Procter & Gamble (P&G) has exceeded analysts’ expectations with its quarterly earnings and revenue. The strong performance was attributed to price hikes for popular products such as Crest toothpaste and Pampers diapers. P&G reported earnings per share of $1.37, surpassing the expected $1.32 per share, and revenue for the quarter was $20.55 billion, higher than the expected $19.98 billion.
Despite these positive results, P&G released a gloomy outlook for its fiscal 2024 sales, falling short of Wall Street’s estimates. However, the company’s shares rose over 2% despite the bleak forecast. P&G projected a 3% to 4% growth in revenue for fiscal 2024, which is below Wall Street’s expectations. Additionally, the company expects earnings per share growth of 6% to 9%, on the lower end of analysts’ forecasts.
P&G highlighted several challenges it faces, including supply chain volatility and multi-faceted challenges. The company has experienced five consecutive quarters of volume declines, with a 1% decrease in volume during the quarter. However, P&G expects volume to start increasing again in fiscal 2024, with a projected 1% to 1.5% rise in prices.
In the United States, P&G’s largest market, consumers have been opting for cheaper private-label products, which has led to a 3% growth in volume. P&G’s health-care segment reported a 3% drop in global volume, with higher prices deterring North American customers. The fabric and home-care business, including Tide detergent, saw a 2% decrease in volume, attributed to lower purchases in China. The grooming segment, which includes Gillette razors, experienced a 1% drop in volume. P&G’s baby, feminine and family care, and beauty segments reported flat volume for the quarter.
Overall, P&G has reported strong earnings and revenue, thanks to price hikes for its popular products. However, the company anticipates challenges ahead and has provided a less optimistic outlook for fiscal 2024 sales. Despite this, P&G remains confident in its ability to bounce back and regain volume growth in the coming years.
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