P&G tops earnings and sales estimates after hiking prices

October 18, 2023
MediaIntel.Asia

It was another clean quarter from Tide maker P&G.
Shares of the consumer products giant rose slightly in pre-market trading on Wednesday amid better-than-expected fiscal first quarter results.
Despite increasing stress on consumer budgets, P&G was able to successfully push through price increases as it continues to double down on new product innovations.
The company saw organic sales growth in all product categories, led by a 10% increase in the healthcare business on the back of demand for Crest toothpaste and whiteners.
P&G chairman and CEO Jon Moeller said the quarter was "very strong."
"Our case rests on Procter’s increasingly evident greater pricing power v. peers, as its “product superiority” strategy resonates well with the post-pandemic consumer," EvercoreISI analyst Robert Ottenstein said in a note ahead of the results.
Crest toothpaste, a Procter & Gamble product, on a Beijing supermarket shelf. (Zhang Peng/LightRocket via Getty Images)
The earnings rundown
Net sales: $21.9 billion, up 6% from the prior year vs. estimate of $21.62 billion
Organic sales growth: 7% vs. 5.83% Beauty Segment organic revenue growth: 5% vs. 6.55% Grooming Segment organic revenue growth: 9% vs. 6.88% Healthcare Segment organic revenue growth: 10% vs. 4.88% Fabric & Home Care Segment organic revenue growth: 9% vs. 6.43% Baby, Feminine & Family Care Segment organic revenue growth: 7% vs. 6.56%
Operating profits: $5.76 billion vs. estimate of $5.34 billion
Adjusted EPS: $1.83, up 17% from the prior year vs. estimate of $1.72
What else caught our attention: Forward guidance
P&G reiterated its fiscal year profit outlook in a range of $6.25 to $6.43. The company sees an $800 tailwind from lower commodities costs.
Fiscal first quarter gross profit margins rose 460 basis points from a year ago, in large part because of higher product prices and easing commodities costs.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].
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