P&G Reports Mixed Earnings and Revenue for Q2 2024, Boosted by Price Hikes

Procter & Gamble (P&G), a multinational consumer goods company, revealed its financial performance for the fiscal second quarter of 2024, reporting mixed earnings and revenue. The company experienced a 3% revenue boost due to price hikes, while also narrowing its forecast for adjusted earnings per share for the full year. Shares of P&G surged, closing up over 4% following the announcement.

Earnings and Revenue Recap

Revenue
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P&G reported adjusted earnings per share of $1.84, exceeding analysts’ expectations of $1.70. However, the company’s net income attributable to the company declined to $3.47 billion, or $1.40 per share, compared to $3.93 billion, or $1.59 per share, in the same period the previous year. Despite this decrease, the results were largely in line with P&G’s prior announcement concerning their write-down of the Gillette brand, which amounted to $1.3 billion. This write-down aligns with the company’s earlier plans to restructure particular markets and address Gillette impairment charges.

On the revenue front, P&G achieved $21.44 billion in net sales, slightly lower than the anticipated $21.48 billion expected by analysts. However, the company’s organic revenue, which excludes the impact of acquisitions, divestitures, and foreign exchange, still managed to rise by an impressive 4% during the quarter.

Market Performance and Outlook

While P&G witnessed overall flat product volumes for the quarter, its grooming business showed positive volume growth. This growth was counterbalanced by declining volumes in the health-care and feminine, baby, and family care segments. Challenges in the Chinese market were reflected in flat sales of the pricey SK-II skin-care brand, while demand weakened in other markets such as the Middle East. Nevertheless, executives expressed optimism for the return of strong demand in North America and Western Europe. Moving forward, P&G anticipates a boost in the health-care division as the cold and flu season gains momentum.

P&G has revised its earnings outlook for fiscal 2024. While maintaining the expectation of 2% to 4% sales growth, the company has narrowed its anticipated core earnings per share growth to 8% to 9%. Conversely, P&G now expects unadjusted earnings per share to be flat to slightly down, contrasting the previous projection of 6% to 9% growth.

 

ADM’s Stock Falls as CFO is Investigated and Profit Prediction is Reduced

 

Despite the mixed earnings and revenue results for the fiscal second quarter, P&G’s effective implementation of price hikes contributed to a revenue increase of 3%. The company continues to maneuver through market challenges, including declining demand in some regions and the write-down of the Gillette brand. With an optimistic outlook, P&G expects sustained growth in core earnings per share while leaving room for market fluctuations in unadjusted earnings per share. Investors showed confidence in the company’s strategies, evident through the positive response and subsequent rise in stock prices.

 

Source:cnbc.com

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