[colabot1]
Procter & Gamble Friday reported quarterly earnings and revenue that beat analysts’ expectations as higher prices helped offset lower demand for its products.
The company, which owns household brands like Febreze, Charmin and Tide, also raised its forecast for organic sales growth in fiscal 2023 to 6%, from 4% to 5% previously.
Shares of the company rose 1% in premarket trading.
Here’s what the company reported for the quarter ended March 31 compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Earnings per share: $1.37 vs. $1.32 expected
- Revenue: $20.07 billion vs. $19.32 billion expected
P&G reported net income of $3.4 billion, or $1.37 per share, in the fiscal third quarter, compared with $3.36 billion, or $1.33 per share, a year earlier.
Net sales rose 4% to $20.07 billion. Organic sales, which eliminate the effects of foreign currencies, acquisitions and divestitures, increased 7% in the quarter.
But the company’s volume, which excludes price and currency changes, fell 3% as consumers shifted to cheaper alternatives. Across its portfolio, P&G prices were up 10% year over year.
This is the fourth consecutive quarter of declining volume for the consumer giant. All of P&G’s divisions saw lower volume for the quarter, except for its health and beauty units, which both saw volume increase by just 1%.
P&G’s fabrics and homecare segment, which includes brands like Tide, Swiffer and Mr. Clean, saw its volume drop 5% in the biggest drop among the company’s business units. P&G said the volume declines occurred primarily in Europe.
The Baby, Feminine and Family Care segment recorded a volume decline of 4%. The division, which includes Pampers, Bounty and Charmin, also saw lower volumes in Europe. The company said demand for its nappies was weaker there.
P&G’s grooming business, which includes Gillette and Venus razors, fell 1% in volume. The unit has generally lagged the rest of P&G’s portfolio, but has performed relatively better this quarter. However, lower demand for its devices led to a drop in the unit’s volume.