As per reports, Procter & Gamble Company (PG) reported first-quarter earnings, beating analyst estimates even as higher costs weighed on the company’s profits. The company also raised its forecast for commodity and freight costs for the remainder of the fiscal year, warning it believes inflation is still increasing.
First-Quarter Highlights:
- Earnings per share of $1.61was reported versus $1.59 expected.
- Revenue of $20.34 billion was reported versus $19.91 billion expected.
- Fiscal first-quarter net income stood at $4.11 billion, or $1.61 per share, a decrease from $4.28 billion, or $1.63 per share, a year earlier.
- Net sales increased 5% to $20.34 billion, exceeding estimates of $19.91 billion.
- Organic revenue increased by 4% in the quarter.
- Price hikes on some of P&G’s products, like Pampers diapers, contributed to organic sales growth by 1%.
- The health care unit was the company’s top-performing segment this quarter.
- The business unit, which includes brands like Oral-B and Vicks, saw organic sales growth of 7%.
- The company’s largest segment, fabric, and home care generated organic sales growth of 5%. The division includes Tide, Febreze, and Mr. Clean products.
- P&G’s grooming business, which includes Venus and Gillette razors, saw organic sales increase by 4% during the quarter.
- The company’s beauty and baby, feminine, and family care units witnessed their organic revenue rise by 2%.
- Despite higher costs, P&G reiterated its prior forecast for full-year earnings and revenue. P&G is calling for fiscal year sales to grow 2% to 4% from the prior year and core earnings per share to increase by 3% to 6%.
- P&G raised its forecast for inflation, predicting that higher commodity and freight costs could hit fiscal 2022 earnings by $2.3 billion, up from its prior outlook of $1.9 billion.
The Procter & Gamble Company (PG), a Dow 30 component, supplies branded consumer packaged goods to consumers across the globe. To learn more about Procter & Gamble (PG) and to continue to track its progress please visit the Vista Partners Procter & Gamble Coverage Page.
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