Procter & Gamble (PG) -) posted better-than-expected first quarter earnings Wednesday, while indicating firmer profits for its current financial year, as it was able to pass on price increases across it range of consumer brands that offset a modest pullback in sales volumes.
Procter & Gamble said core earnings for the three months ending in September, the group's fiscal first quarter, were pegged at $1.83 per share, a 33.6% increase from the same period last year and 11 cents ahead of the Street consensus forecast.
Group net sales, Procter & Gamble said, rose 6.3% to $20.9 billion, narrowly topping analysts' estimates of a $21.6 billion tally. Organic sales were up 7% while price increases of around 7%, however, helped offset a 1% decline in overall sales volumes, with gross profit margins rising by 460 basis points to 52%.
Looking into the group's 2024 fiscal year, P&G said its sees organic sales growth at the "higher end" of its prior forecast of 4% and 5% with core earnings also the the upper end of the 6% to 9% growth estimate.
“We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales and core EPS growth,” said CEO Jon Moeller.
“We remain committed to our integrated strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization," Moeller added. "The P&G team’s execution of this strategy has enabled us to build and sustain strong momentum. We have confidence this remains the right strategy to deliver balanced growth and value creation.”
Procter & Gamble shares were marked 3.1% higher in early Wednesday trading immediately following the earnings release to change hands at $150.75 each, a move that would nudge the stock into positive territory for the past six months.
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