Procter Tuesday report The company’s performance came under pressure due to disappointing demand in China, with quarterly revenue weaker than expected.
The company’s shares fell 5% in early trading.
The company’s report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $1.40, expected $1.37
- income: US$20.53 billion, expected US$20.74 billion
Procter & Gamble reported fourth-quarter net income attributable to the company of $3.14 billion, or $1.27 per share, down from $3.38 billion, or $1.37 per share, in the same period last year.
Excluding items, the company earned $1.40 per share.
net sales US$20.53 billion was basically the same as the same period last year. Procter & Gamble’s organic revenue (excluding foreign exchange, acquisitions and divestitures) grew 2% in the quarter.
Despite disappointing sales, the company’s sales grew for the first time in more than two years.
Sales do not include pricing, making this metric a more accurate reflection of demand than sales. Price increases across P&G’s entire product portfolio, from diapers to detergents, have boosted sales over the past few years, but sales have flattened or even declined as consumers bought fewer of its products.
Procter & Gamble’s sales rose 1% on strong demand for its beauty, health, fabric and home care products. Quarterly sales rose 2% in all three segments.
But the company’s beauty and baby, feminine and home care divisions continue to struggle. Sales in both divisions fell 1% each due to lower demand for the pricey SK-II skin care brand and diapers.
In North America, the company’s market share is growing. The company’s executives said on the company’s earnings call that sales in the domestic market increased by 4% this quarter. Since the market share of private-label products is relatively stable, consumers have not purchased at reduced prices. P&G’s promotional activities are still down about 15% compared with pre-epidemic levels.
But China, P&G’s second-largest market, is still struggling. The company did not disclose quarterly sales in the region, but organic sales in Greater China fell 9%. Executives said underlying market conditions remain weak. Weak demand in China led to a decline in sales at P&G’s beauty business.
P&G expects core net income per share in fiscal 2025 to be between US$6.91 and US$7.05. The company reiterated its forecast for revenue growth of 2% to 4%.
