Photo by Nick Chong on Unsplash
Procter & Gamble Reports Mixed Results After Price Hikes
April 19, 2024
Procter & Gamble’s recent quarterly results showed a mix of gains and setbacks. Despite facing challenges in attracting shoppers due to increased prices over the past two years, the company managed to exceed earnings expectations.
The company’s prices rose by 3% compared to the same period last year. However, P&G clarified that there were no nationwide price increases during the quarter. Despite this, sales didn’t meet expectations, causing the company’s shares to drop by over 1% in morning trading.
Key financial highlights include earnings per share of $1.52, surpassing the expected $1.41, and revenue of $20.2 billion, slightly below the expected $20.41 billion. The company reported a net income of $3.75 billion, up from $3.4 billion a year earlier, with net sales increasing by 1% to $20.2 billion. Organic sales, excluding acquisitions and currency impacts, grew by 3%.
Although P&G anticipated volume growth this fiscal year, quarterly volumes remained flat for the second consecutive quarter. However, some divisions saw growth: Beauty products like Pantene and Olay increased by 1%, grooming products like Gillette and Venus razors rose by 2%, and fabric and home care products like Swiffer and Febreze grew by 1%.
“We delivered solid sales and strong earnings growth in the third quarter despite multiple headwinds, enabling us to raise our EPS growth guidance and maintain our top-line outlook for the fiscal year. We remain committed to our integrated strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. We are increasing investments in superiority to drive market growth and sustain strong momentum. We have confidence this remains the right strategy to deliver balanced growth and value creation.”
Jon Moeller, chairman of the board, president, and chief executive officer, via P&G press release
On the downside, health care and baby, feminine, and family care divisions experienced declining volumes. The company attributed these declines to higher prices and a weaker cold and flu season.
Geographically, P&G faced challenges in China due to softer demand for premium skincare products like SK-II. Additionally, geopolitical tensions in the Middle East led to reduced promotions by retailers. Despite these challenges, the U.S., P&G’s largest market, saw a 3% volume growth.
Looking ahead, P&G increased its full-year earnings growth outlook to 10%-11% from the previous 8%-9%. The company also adjusted its unadjusted earnings growth forecast to 1%-2% and maintained a sales growth projection of 2%-4% for 2024. Additionally, P&G expects a $900 million benefit from favorable commodity costs, up from the previous $800 million forecast.
Recent News
Google’s Antitrust Trial Teeters On
Google’s landmark antitrust case against the Justice Department has reached its final stage, sparking concern across Silicon Valley. Prosecutors argue that Google’s dominance in online search and search advertising markets is illegal, while Google maintains its superiority. The outcome, to be decided by US District Judge Amit Mehta, could have significant implications not only for Google but also for other tech giants like Apple, Amazon, and Meta.
Virgin Galactic’s Unity Spacecraft Nears Final Flight
Virgin Galactic has announced that its Unity spacecraft is set to embark on its last commercial journey, marking a significant milestone for the company. The Galactic 07 mission, scheduled for June 8, will be the 12th and final flight of the Unity spacecraft before Virgin Galactic shifts its focus to its new Delta-class spacecraft.
Apple’s Vision Pro Headset Dominates Enterprise Market
Apple’s Vision Pro headset, a mixed-reality spatial computing device, has found its way into the arsenals of more than half of the Fortune 100 companies, with over 50% investing in at least one unit. This revelation came during Apple’s first quarter 2024 earnings call, where CEO Tim Cook highlighted the enthusiastic reception of their products within the corporate sector.
Cinco de Mayo 2024: Food and Drink Specials
Cinco de Mayo isn’t just a celebration of Mexican-American culture; it’s also a day of fantastic deals and specials across the nation. This year’s festivities kick off with deals that last until May 5th. Here’s a list of some of the offers: