Pepto Bismol by Procter & Gamble is displayed on a store shelf on July 28, 2023 in Greenbrae, California.
Justin Sullivan | Getty Images
Procter & Gamble on Wednesday reported quarterly earnings and revenue that beat analysts’ expectations, thanks to growing demand for household staples like toilet paper and laundry products.
The company’s shares rose 3% in premarket trading.
Here’s what the company reported for the quarter ended Dec. 31 compared with what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $1.88 vs. $1.86 expected
- Revenue: $21.88 billion vs. $21.54 billion expected
P&G reported net income attributable to the company of $4.63 billion, or $1.88 per share, in the fiscal second quarter, up from $3.47 billion, or $1.40 per share, a year earlier.
Net sales rose 2% to $21.88 billion. The company’s organic revenue, which excludes currency changes and sales, rose 3% in the quarter.
P&G’s volume rose 1% during the period. The metric excludes prices, making it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen weaker demand for its products after several years of price increases.
The Baby, Women and Family Care division reported the largest increase in volume, with a 4% jump. P&G is responsible for its family care and feminine care brands, which include Charmin, Puffs and Tampax products. But sales of organic baby care fell into the low single digits as fewer parents bought Pampers diapers.
P&G’s grooming products segment, which includes Gillette razors, posted 2% growth in the quarter. The company said the innovation drove the volume increase.
The company’s fabrics and home care division reported a 1% increase in volume. The segment includes Tide, Swiffer and Cascade products.
P&G’s health care segment, which includes Pepto Bismol and Oral-B products, reported flat volume.
Only P&G’s beauty division posted a volume decline in the quarter. The company said volume of hair care products decreased in the Chinese market, and the skin care segment, which includes Olay products, saw a decline in global volume. Overall, the company’s beauty division saw a 1% decline in volume.
P&G also reiterated its forecast for fiscal 2025. It forecasts basic net earnings per share in the range of $6.91 to $7.05 and revenue growth of 2% to 4%.
