Bottles of Tide detergent, a product of Procter & Gamble, go on sale at a drug store on July 30, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Procter & Gamble reported mixed quarterly results on Friday as the consumer products giant grappled with rising raw material costs and warned it expects “significant headwinds” to persist for its 2023 fiscal year .
The Cincinnati-based maker of products including Pampers, Pantene and Tide said higher prices in its fiscal fourth quarter offset a decline in sales volume, which it attributed mainly to pandemic-related lockdowns in China and the reduction of operations in Russia.
The company’s shares were down about 4% in premarket trading.
Here’s what the company reported compared to what Wall Street expected, according to a survey of analysts by Refinitiv:
- Earnings per share: Adjusted $1.21 vs. $1.22 expected
- Revenue: $19.52 billion versus $19.4 billion expected
For the three months ended June 30, P&G reported net income of $3.05 billion, or $1.21 per share. In the year-ago period, it reported net income of $2.91 billion, or $1.13 per share.
Net sales rose 3% to $19.52 billion.
In both the health care and fabric and home units, organic sales increased 9% on higher prices, despite flat and negative volumes, respectively.
During a media call, P&G Chief Financial Officer Andre Schulten said he was confident the “consumer is holding up well” as the company raised prices. He attributed flat and negative volumes to reduced business in Russia.
For its 2023 fiscal year, the company said it expects organic sales to rise 3% to 5% and earnings per share to be flat to 4%. P&G expects headwinds of $3.3 billion due to exchange rates, higher raw material costs and higher transportation costs.
Read the full earnings release here.