Procter & Gamble recently announced its quarterly results, revealing an increase in volume for the first time in over two years. This increase, which excludes pricing, is seen as a more accurate reflection of demand compared to sales. In recent years, P&G’s sales growth was driven by price hikes across its product portfolio, but actual volume remained stagnant or declined as consumers purchased less of their products. As a result, the company’s shares fell by 3% in premarket trading.
The company’s results were compared to Wall Street expectations, with earnings per share coming in at $1.40 adjusted versus $1.37 expected, and revenue at $20.53 billion versus $20.74 billion expected. P&G reported a fourth-quarter net income of $3.14 billion, or $1.27 per share, down from $3.38 billion, or $1.37 per share, in the previous year. Excluding items, the company earned $1.40 per share, while net sales remained flat at $20.53 billion compared to the same period last year. P&G’s organic revenue, which excludes foreign currency effects, acquisitions, and divestitures, increased by 2% in the quarter.
P&G’s volume rose by 1% in the quarter, driven by stronger demand for its grooming, health care, and fabric and home care products, which all reported 2% volume growth. However, the company’s beauty and baby, feminine, and family care divisions continued to struggle, with both units experiencing a 1% decline in volume. This was attributed to lower demand for products such as the SK-II skincare brand and diapers.
Looking towards fiscal 2025, Procter & Gamble anticipates core net earnings per share to be in the range of $6.91 to $7.05. The company also reiterated its revenue outlook of 2% to 4% growth, highlighting its continued focus on driving profitability and growth in the coming years. Despite facing challenges in certain product segments, P&G remains committed to improving its overall performance and delivering value to its shareholders.
Overall, Procter & Gamble’s mixed quarterly results reflect the ongoing challenges faced by the company in a competitive market environment. While certain segments showed growth in volume and revenue, others continued to struggle, highlighting the need for ongoing strategic initiatives to drive demand and improve profitability. With a focus on innovation and product development, P&G aims to position itself for future success and continue to deliver value to its customers and stakeholders in the years ahead.
