Pepto Bismol, produced by Procter & Gamble, is displayed on a grocery store shelf in Greenbrae, California, on July 28, 2023.
Justin Sullivan | Getty Images
Procter & Gamble Quarterly profit and revenue reported on Wednesday beat analysts’ expectations, helped by rising demand for household staples such as toilet paper and laundry products.
The company’s shares rose 3% in premarket trading.
Here’s how the company’s report for the quarter ended Dec. 31 compared with Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: $1.88, $1.86 expected
- Revenue: $21.88 billion, vs. $21.54 billion expected
Procter & Gamble reported second-quarter net income attributable to the company of $4.63 billion, or $1.88 per share, up from $3.47 billion, or $1.40 per share, in the same period last year.
net sales grew 2% to $21.88 billion. The company’s organic revenue, which excludes currency changes and divestments, grew 3% in the quarter.
P&G’s sales grew 1% during the period. This metric does not include pricing, which makes it a more accurate reflection of demand than sales. Like many consumer goods companies, P&G has seen demand for its products weaken after several years of price increases.
The company’s baby, feminine and home care division posted the largest sales growth, up 4%. P&G attributes this to its home care and feminine care brands, which include Charmin, Puffs and Tampax products. But organic sales of baby care products fell by single digits as fewer parents bought Pampers diapers.
Sales of P&G’s beauty business, which includes Gillette razors, grew 2% in the quarter. The company said innovation drove sales growth.
Sales in the company’s fabrics and home care divisions rose 1%. This segment includes Tide, Swiffer and Cascade products.
Sales at Procter & Gamble’s healthcare unit, which includes Pepto Bismol and Oral-B products, were flat.
Only Procter & Gamble’s beauty division saw sales shrink this quarter. The company said sales of its hair care products fell in Greater China, while global sales of its skin care business, which includes Olay products, also declined. Overall, sales in the company’s beauty division fell 1%.
P&G also reiterated its fiscal 2025 forecast. Core net income per share is expected to be between US$6.91 and US$7.05, with revenue growing 2% to 4%.
