Procter & Gamble on Friday reported quarterly revenue and revenue that beat analysts’ expectations, as its product volume grew for the first time in a year.
The company’s shares rose nearly 4% in premarket trading.
Here’s what the company reported compared to Wall Street’s expectations, based on a survey of analysts by LSEG:
- Earnings per share: $1.59 adjusted vs. $1.56 expected
- Net worth: $21.24 billion versus $20.5 billion expected
IP&G reported net income for the company’s fiscal third quarter of $3.93 billion, or $1.63 per share, up from $3.78 billion, or $1.54 per share, a year earlier. Excluding restructuring charges and other items, the company earned $1.59 per share.
Total sales increased 7% to $21.24 billion. Organic sales, which exclude purchases, cash and cash equivalents, rose 3%.
P&G’s volume increased 2%, marking the first time in a year that it reported increased volume across the company. The metric does not include prices, making it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen demand for its products shrink as consumers try to spend less and stretch their laundry detergent and shampoo further.
“I would say, right now, the consumer in the US is stable,” P&G CFO Andre Schulten said in a press call. “We’re seeing the bifurcation of consumer segments continue.”
P&G’s beauty division, which includes Olay, Head & Shoulders and Pantene, was the star of the quarter, with volume growth of 5%. IP&G said it saw value increases across its personal care, skin care and hair care categories.
The child, women and family care segment saw volume increase by 3%. The company has seen strong demand for its diapers and family care products, including Bounty paper towels and Charmin toilet paper.
P&G’s textile and home care division reported a 2% increase in volume in the quarter, fueled by higher North American demand for its Tide detergent.
Self-care and health care were the two remaining portfolios. The grooming segment, which includes Gillette and Venus products, saw volume decline 2%. Healthcare, home to Oral-B and Vicks, also reported a 2% drop in volume.
The company reiterated its full-year forecast for sales growth between 1% and 5% and earnings per share growth in the range of 1% to 6%.
“We are increasing investment to accelerate momentum for consumers despite the challenging global and economic environment, while maintaining our guidance for the fiscal year,” CEO Shailesh Jejurikar said in a statement.
In the fourth fiscal quarter, P&G reported a $150 million decrease in increased costs, driven largely by transportation costs stemming from higher fuel prices, Schulten said.
Correction: IP&G reported adjusted EPS of $1.59. An earlier version of this story misstated the figure.
