Pepto Bismol manufactured by Procter & Gamble is displayed on the shelves of a grocery store on July 28, 2023 in Greenbrae, California.
Justin Sullivan | Getty Images
Procter & Gamble On Wednesday, the group reported quarterly profits and revenues that beat analysts’ expectations, thanks to growing demand for basic necessities like toilet paper and laundry detergents.
Shares of the company rose 3% in premarket trading.
Here’s what the company reported for the quarter ended Dec. 31, compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $1.88 versus $1.86 expected
- Revenue: $21.88 billion versus $21.54 billion expected
P&G reported second-quarter net income attributable to the company of $4.63 billion, or $1.88 per share, compared with $3.47 billion, or $1.40 per share, a year earlier. .
Net sales rose 2% to $21.88 billion. The company’s organic revenue, which excludes currency fluctuations and divestments, increased 3% during the quarter.
P&G volume increased 1% during the period. The measure excludes prices, making it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen declining demand for its products after several years of rising prices.
The company’s baby, feminine and family care division saw the largest increase in volume, jumping 4%. P&G credited its family care and feminine care brands, which include its Charmin, Puffs and Tampax products. But sales of organic baby care products fell by low single digits as fewer parents bought Pampers diapers.
P&G’s grooming products segment, which includes Gillette razors, saw volume increase 2% during the quarter. The company said innovation had fueled the increase in volumes.
The company’s fabric and home care division saw a 1% volume increase. The segment includes Tide, Swiffer and Cascade products.
P&G’s healthcare segment, which includes Pepto Bismol and Oral-B products, reported flat volume.
Only P&G’s beauty division saw a volume decline for the quarter. The company said volume of its hair care products declined in its Greater China market and its skin care segment, which includes Olay products, saw global volume decline. Overall, the company’s beauty division saw volume drop 1%.
P&G also reiterated its guidance for fiscal 2025. It expects core net earnings per share of $6.91 to $7.05 and revenue growth of 2 to 4 percent.
