A Procter & Gamble (P&G) logo is seen in the course of the sixth China International Import Expo (CIIE) on the National Exhibition and Convention Center (Shanghai) on November 7, 2023 in Shanghai, China.
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Procter & Gamble on Tuesday reported mixed quarterly earnings and revenue for its fiscal second quarter of 2024 as price hikes helped boost revenue 3%.
The corporate also narrowed its outlook for full-year adjusted earnings per share to a variety of $6.37 to $6.43, although its forecast for unadjusted earnings fell as a consequence of its plans to put in writing down Gillette and restructure certain markets.
Shares of the corporate rose about 1% in premarket trading.
Here’s what P&G reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly generally known as Refinitiv:
- Earnings per share: $1.84 adjusted vs. $1.70 expected
- Revenue: $21.44 billion vs. $21.48 billion expected
P&G reported fiscal second-quarter net income attributable to the corporate of $3.47 billion, or $1.40 per share, down from $3.93 billion, or $1.59 per share, a 12 months earlier.
The Tide detergent owner wrote down the worth of razor brand Gillette by $1.3 billion, following through on an announcement it made in December. The corporate previously said it could record as much as $2.5 billion in charges over the subsequent two fiscal years related to Gillette impairment charges and restructuring its business in some markets, like Argentina and Nigeria.
Excluding the impacts of restructuring and intangible impairment, the corporate earned $1.84 per share.
Net sales rose 3% to $21.44 billion. P&G’s organic revenue, which strips out the impact of acquisitions, divestitures and foreign exchange, rose 4% within the quarter.
Product volumes
After roughly two years of upper prices on their Charmin toilet paper and Downy fabric softener, consumers have pulled back on their purchases of P&G products. The corporate’s volume was flat overall for the quarter, and only its grooming business reported volume growth. The metric excludes the impact of currency and pricing changes to reflect demand.
The grooming division, which incorporates Gillette, saw volume grow 1% within the quarter.
P&G’s beauty segment reported flat volume for the quarter as sales of its pricey SK-11 skincare brand continued to struggle. Its fabric and residential care business also reported flat volume.
The corporate’s health care division reported volume declines of three%. P&G said the marketplace for respiratory products, like its brand Vicks, shrank in the course of the quarter.
P&G’s feminine, baby and family care business saw its volume fall 2% within the quarter, fueled by shrinking demand for its diapers and tampons. Of that division, only its family care segment, which incorporates Bounty paper towels, saw volume increase.
For fiscal 2024, the corporate now anticipates core earnings per share growth of 8% to 9%, narrowing its prior range of 6% to 9%. Nevertheless, it now expects unadjusted earnings per share to be flat to down 1%, significantly lower than a previous range of 6% to 9% growth.
P&G reiterated its forecast for fiscal sales growth of two% to 4%.
This story is developing. Please check back for updates.