The Procter & Gamble Company (PG) beat quarterly earnings estimates boosted by higher demand for its skin and health care products but raised concerns over rising commodity and freight costs that would dig a $2 billion loss out of its earnings this year. David Taylor’s replacement, Chief Operating Officer Jon Moeller, will now have to look into the soaring commodity and transport costs caused by pandemic-related disruptions.
Procter & Gamble posted an 11% increase in sales at its beauty segment in the fourth quarter ending June 30, as consumers returning to social events, spent more on personal care products, as vaccine roll-out and COVID-19 restrictions eased in the United States and parts of Europe.
Net sales increased 7% to $18.95 billion, compared with estimates of $18.41 billion. Core earnings stood at $1.13 per share, beating estimates of $1.08 per share. The company views fiscal 2022 core earnings per share to increase between 3% and 6%, or about $5.82 to $6.00. Procter & Gamble expects a $1.9 billion after-tax hit due to freight costs and higher commodities this year, partially offset by foreign exchange benefits of about $100 million.
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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