In this photo illustration, Pantene and Head & Shoulders hair products are displayed on July 28, 2023 in San Anselmo, California.
Justin Sullivan | Getty Images
Procter & Gamble on Friday reported mixed quarterly results but raised its full-year earnings outlook.
Shares of the company were roughly flat in premarket trading.
Here’s what P&G reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.52 vs. $1.41 expected
- Revenue: $20.2 billion vs. $20.41 billion expected
P&G reported fiscal third-quarter net income attributable to the company of $3.75 billion, or $1.52 per share, up from $3.4 billion, or $1.37 per share, a year earlier.
Net sales rose 1% to $20.41 billion. Organic sales, which strips out acquisitions, divestitures and foreign currency, increased 3% in the quarter.
But the company’s quarterly volume was flat for the second consecutive quarter. In October, executives said that they anticipated returning to volume growth in fiscal 2024. Three quarters in, the company hasn’t yet lured back the customers it scared away with its price hikes over the last two years.
However, three of P&G’s divisions reported volume growth for the quarter. Its beauty segment, which includes Olay and Pantene, saw volume rise 1%, fueled by innovation in personal care. The company’s grooming business, home to its Gillette and Venus razors, reported volume growth of 2%. And fabric and home care, which includes Febreze and Swiffer, saw 1% volume growth.
But P&G’s health care and baby, feminine and family care divisions saw volume drop further. The company blamed its higher prices and a weaker cold and flu season for the declines.
For the full year, P&G is now expecting core net earnings per share growth of 10% to 11%, up from its prior range of 8% to 9%. The company also raised its projection for unadjusted earnings growth to a range of 1% to 2%, up from its previous forecast of down 1% to flat. P&G maintained its outlook of 2% to 4% sales growth in 2024.