Procter & Gamble reported mixed quarterly results, with volume increasing for the first time in over two years. This metric, which excludes pricing, is a better reflection of demand than sales. In recent years, P&G’s sales growth was fueled by price hikes across its product portfolio, leading to flattened or declining volume as consumers bought less. The company’s shares fell 3% in premarket trading, but its earnings per share of $1.40 adjusted beat expectations, while revenue of $20.53 billion fell slightly short of the $20.74 billion expected.
For the fiscal fourth quarter, P&G reported a net income of $3.14 billion, or $1.27 per share, down from $3.38 billion or $1.37 per share from the previous year. Excluding items, the company earned $1.40 per share. Net sales of $20.53 billion were flat year-over-year, but the company’s organic revenue, excluding foreign currency, acquisitions, and divestitures, increased by 2%. P&G’s volume also saw a 1% increase, driven by stronger demand for grooming, health care, and fabric and home care products.
However, P&G’s beauty and baby, feminine, and family care divisions continued to struggle in the quarter, with both units experiencing a 1% decline in volume. This was attributed to lower demand for the high-end SK-II skincare brand in the beauty segment, as well as decreased demand for diapers in the baby, feminine, and family care segment. Despite these challenges, P&G remains focused on growth, with plans to continue investing in innovation and marketing to drive future sales.
Looking ahead to fiscal 2025, P&G anticipates core net earnings per share in the range of $6.91 to $7.05, with revenue expected to grow between 2% to 4%. The company remains optimistic about its prospects for growth, particularly in key segments such as grooming, health care, and fabric and home care products. P&G’s strategy moving forward will likely involve a continued focus on innovation, marketing, and cost management to drive profitability and improve overall performance in the coming years.
Overall, Procter & Gamble’s mixed quarterly results reflect a complex landscape for the company, with some segments experiencing growth while others face challenges. Despite these headwinds, P&G remains focused on driving future growth through investments in key product categories and strategic initiatives. With a clear outlook for fiscal 2025 and ongoing efforts to drive demand for its products, P&G continues to position itself for success in the competitive consumer goods industry.
