The Procter & Gamble Company (PG) reported strong Fourth-Quarter revenue (ending June 30) as sales for consumer goods like Tide laundry detergent and Mr. Clean products surged amid the COVID-19 lockdown witnessing higher organic sales.
“There may be a long term increase focused on home — more time at home, more meals at home — with related consumption impacts,” stated CEO David Taylor to analysts.
Key Earning Figures:
- Adjusted Earnings per share of $1.16 versus $1.01 expected.
- Revenue of $17.7 billion generated versus $16.97 billion expected.
- Net income of $2.8 billion, or $1.07 per share, up from a loss of $5.2 billion, or $2.12 per share, a year earlier was reported.
- Net sales rose 4% to $17.7 billion, beating expectations of $16.97 billion.
- Organic Sales Increased 6% during the quarter, its home care segment like Tide and Comet cleaning products, saw organic sales rise 14% in the quarter. North America and China witnessed a surge in sales for its household cleaning products.
- P&G’s family, baby, and feminine care segment witnessed its organic sales, up by 5%.
- Its beauty line of products like Olay and Pantene reported organic sales growth of 3%.
- Organic sales of its expensive SK-II skincare line dropped by double digits, caused by travel disruptions due to the pandemic.
- P&G’s health-care segment saw organic sales growth of 2%.
- Organic sales of its oral care products dropped as dentist offices and electronics stores remained closed due to the pandemic.
- Personal health-care products, including Vicks and Pepto-Bismol, reported organic sales to grow by double digits.
- P&G’s grooming business which includes Gillette and Venus reported declining organic sales.
Fiscal 2021 outlook:
P&G expects overall growth of 1% to 3% and organic revenue growth of 2% to 4% and forecasts earnings growth of 6% to 10%. Payout of $8 billion in dividends and back $6 billion to $8 billion in its shares for fiscal 2021 is forecasted.
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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