Procter & Gamble recently revealed mixed quarterly results, but what caught the attention of many investors was the company’s increasing volume. Volume, which excludes pricing, serves as a more accurate indicator of demand compared to sales figures. This significant jump in volume is a promising sign for the company, especially after experiencing stagnant or declining volume for over two years.
In terms of financial performance, P&G reported adjusted earnings per share of $1.40, surpassing expectations of $1.37. However, the revenue fell slightly short of Wall Street estimates, coming in at $20.53 billion compared to the expected $20.74 billion. The company’s fiscal fourth-quarter net income attributable to Procter & Gamble was $3.14 billion, or $1.27 per share, down from the previous year.
Despite the mixed results, P&G recorded a 2% increase in organic revenue during the quarter. This growth, which excludes factors like foreign currency fluctuations, acquisitions, and divestitures, demonstrates a positive trend in the company’s core business operations.
Notably, P&G experienced a 1% rise in volume, primarily driven by strong demand for grooming, health care, and fabric and home-care products. These segments each reported a 2% growth in volume. However, challenges persisted in the beauty and baby, feminine, and family care divisions, with a 1% decline in volume. Lower demand for high-end SK-II skin-care products and diapers contributed to the volume decrease in these units.
Looking ahead to fiscal 2025, Procter & Gamble anticipates core net earnings per share to fall within the range of $6.91 to $7.05. The company also reiterated its revenue growth outlook of 2% to 4%. This forward-looking guidance suggests that P&G remains confident in its ability to drive continued growth and innovation in the coming years.
Despite a slight miss on revenue expectations, Procter & Gamble’s quarterly results reflect promising signs of growth, particularly in terms of volume and organic revenue. By addressing challenges in specific business segments and maintaining a positive outlook for the future, P&G remains well-positioned to continue its success in the consumer goods industry.