Pepto Bismol made by Procter & Gamble is displayed on a grocery store shelf on July 28, 2023 in Greenbrae, California.
Justin Sullivan | Getty Images
Procter & Gamble on Wednesday reported quarterly earnings and revenue that beat analysts’ expectations, thanks to growing demand for household staples like toilet paper and laundry products.
Shares of the company rose 3% in premarket trading.
Here’s what the company reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.88 vs. $1.86 expected
- Revenue: $21.88 billion vs. $21.54 billion expected
P&G reported fiscal second-quarter net income attributable to the company of $4.63 billion, or $1.88 per share, up from $3.47 billion, or $1.40 per share, a year earlier.
Net sales rose 2% to $21.88 billion. The company’s organic revenue, which excludes currency changes and divestments, increased 3% in the quarter.
P&G’s volume grew 1% during the period. The metric excludes pricing, which makes it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen weaker demand for its products after several years of price hikes.
The company’s baby, feminine and family care division reported the biggest increase in volume, with a 4% jump. P&G credited its family care and feminine care brands, which include its Charmin, Puffs and Tampax products. But baby care organic sales slid by low-single digits, as fewer parents bought Pampers diapers.
P&G’s grooming segment, which includes Gillette razors, saw volume rise 2% in the quarter. The company said innovation fueled the increase in volume.
The company’s fabric and home care division reported a volume increase of 1%. The segment includes Tide, Swiffer and Cascade products.
P&G’s health care segment, which includes Pepto Bismol and Oral-B products, reported flat volume.
Only P&G’s beauty division posted shrinking volume for the quarter. The company said that volume for its hair care products declined in its Greater China market, and its skin care segment, which includes Olay products, saw global volume decrease. Overall, the company’s beauty division saw volume fall 1%.
P&G also reiterated its fiscal 2025 forecast. It anticipates core net earnings per share in a range of $6.91 to $7.05 and revenue growth of 2% to 4%.