View of Dawn Dish Soap Liquid at Stop & Shop Supermarket.
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Procter & Gamble beat analysts’ estimates for quarterly earnings and earnings on Friday as consumers bought more high-quality health and personal care products.
Its stocks rose less than 1% in early news trading.
Here’s what the company reported for the quarter ended June 30, versus Wall Street expectations, based on an analyst survey conducted by Refinitiv:
- Earnings per share: $ 1.13 versus an expected $ 1.08
- Revenue: $ 18.95 billion versus $ 18.41 billion expected
P&G reported net earnings of $ 2.9 billion, or $ 1.13 per share, for the period ended June 30, compared to $ 2.8 billion, or $ 1.07 per share, a year ago . Analysts polled by Refinitiv expected earnings per share of $ 1.08.
Net sales increased 7% to $ 18.9 billion from $ 17.7 billion a year ago. That exceeded Wall Street’s expectations of $ 18.41 billion. Organic sales increased by 4%.
For fiscal year 2022, P&G is demanding fiscal year revenue growth of 2 to 4% year-on-year. Organic sales are expected to increase by the same amount.
P&G announced Thursday evening that current Chief Operating Officer Jon Moeller will become CEO in November, replacing David Taylor, who will take over as Executive Chairman of the company’s board of directors. Taylor, 62, was CEO since November 1, 2015.
The company, whose portfolio includes Tide laundry detergents, Charmin toilet paper and Pampers diapers, is well on its way to raising prices on some products this fall in response to higher raw material costs. Rival Kimberly-Clark, who makes Huggies, has also announced price increases for various items.
After the price increases go into effect, P&G plans to maintain market share by trying to increase consumer perception of the value of its products and by introducing new or improved items. Companies like P&G and Kimberly-Clark are betting that consumers will be willing to pay more for the branded version rather than opting for a cheaper private label.
The P&G share has risen less than 1% since the beginning of the year. The company has a market capitalization of $ 341.4 billion.
– Amelia Lucas from CNBC contributed to this coverage.
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