Procter & Gamble on Friday reported quarterly earnings and revenue that topped analysts’ expectations, as volume for its products grew for the first time in a year.
Shares of the company rose roughly 4% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.59 adjusted vs. $1.56 expected
- Revenue: $21.24 billion vs. $20.5 billion expected
P&G reported fiscal third-quarter net income attributable to the company of $3.93 billion, or $1.63 per share, up from $3.78 billion, or $1.54 per share, a year earlier. Excluding restructuring costs and other items, the company earned $1.59 per share.
Net sales rose 7% to $21.24 billion. Organic sales, which strip out acquisitions, divestitures and currency, increased 3%.
P&G’s volume increased 2%, marking the first time in a year that it reported growing volume across the company. The metric excludes pricing, which makes it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen demand for its products shrink as shoppers try to spend less and stretch their laundry detergent and shampoo further.
“I would say, right now, the consumer in the U.S. is stable,” P&G CFO Andre Schulten said on a call with media. “We see the bifurcation of the consumer segments continuing.”
P&G’s beauty division, which includes Olay, Head & Shoulders and Pantene, was the star of the quarter, with 5% volume growth. P&G said it saw volume increases across its personal care, skin care and hair care categories.
The baby, feminine and family care segment saw volume increase 3%. The company saw higher demand for its diapers and family care products, which includes Bounty paper towels and Charmin toilet paper.
P&G’s fabric and home care division reported that volume rose 2% in the quarter, fueled by higher North American demand for its Tide detergent.
Grooming and health care were the two laggards of the portfolio. The grooming segment, which includes Gillette and Venus products, saw volume fall 2%. Health care, which houses Oral-B and Vicks, also reported that volume declined 2%.
The company reiterated its full-year forecast of sales growth between 1% and 5% and net earnings per share growth in the range of 1% to 6%.
“We’re increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year,” CEO Shailesh Jejurikar said in a statement.
In the fiscal fourth quarter, P&G is projecting a $150 million hit from increased costs, largely driven by increased transportation costs stemming from higher fuel prices, Schulten said.
Correction: P&G reported adjusted EPS of $1.59. An earlier version of this story misstated the figure.
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