Tide laundry detergent is on display in Compton, California.
Mike Blake | Reuters
Procter & Gamble On Wednesday reported Quarterly earnings and sales that beat analysts’ expectations, although volumes fell for the sixth straight quarter.
The company’s shares rose 1.4% in premarket trading.
Here’s what P&G reported compared to Wall Street’s expectations, based on an analyst survey from LSEG, formerly known as Refinitiv:
- Earnings per share: $1.83 vs. expected $1.72
- Revenue: $21.87 billion vs. expected $21.58 billion
P&G reported first-quarter net income of $4.52 billion, or $1.83 per share, up from $3.94 billion, or $1.57 per share, a year earlier.
Net sales rose 6% to $21.87 billion. The company’s organic sales rose 7% in the quarter, helped by higher prices for P&G products.
But the company’s volume shrank 1%. The metric excludes the impact of currency and price changes to reflect demand.
For about two years, P&G has been raising prices on its products like Tide laundry detergent and Charmin toilet paper.
“For obvious reasons, we don’t comment on future pricing trends, but I can tell you we’re comfortable with where we are right now,” CEO Jon Moeller said on CNBC’s “Squawk Box” on Wednesday.
However, some consumers are unhappy with P&G’s higher prices. As a result, some buyers have switched to cheaper private label alternatives, and P&G said it was experiencing “price-driven volume declines” for many of its brands.
The company’s baby, feminine and family care segment reported a volume decline of 3%. The division includes brands such as Pampers and Bounty.
P&G’s personal care segment, which includes Venus and Gillette products, saw volume decline 2%.
Volume in the company’s fabric and home care business shrank 1%, even as customers bought more of its premium cleaning products, including Swiffer and Cascade.
P&G’s healthcare division was the only segment to report volume growth in the quarter. The company said it is seeing strong demand for respiratory products like those made by Vicks.
The company also expanded its guidance for fiscal 2024 revenue, anticipating that foreign exchange rates could be a greater drag than previously expected. The company now forecasts revenue growth of 2% to 4%, up from the previous forecast of 3% to 4%.
P&G reiterated its full-year guidance for organic sales growth, which excludes the impact of acquisitions, divestitures and foreign currencies, and earnings per share growth.