Procter & Gamble on Tuesday reported mixed quarterly results, but the company’s volume increased for the first time in more than two years.
Volume excludes pricing, making the metric a more accurate reflection of demand than sales. Over the last several years, P&G’s price hikes across its portfolio, from diapers to detergent, fueled its sales growth, but volume flattened or even declined as consumers bought less of its products.
Shares of the company fell 4.6% 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: $1.40 adjusted vs. $1.37 expected
- Revenue: $20.53 billion vs. $20.74 billion expected
P&G reported fiscal fourth-quarter net income attributable to the company of $3.14 billion, or $1.27 per share, down from $3.38 billion, or $1.37 per share, a year earlier.
Excluding items, the company earned $1.40 per share.
Net sales of $20.53 billion were essentially flat compared with the year-ago period. P&G’s organic revenue, which excludes foreign currency, acquisitions and divestitures, increased 2% in the quarter.
P&G’s volume rose 1%, thanks to stronger demand for its grooming, health care, and fabric and home-care products. All three of those segments reported 2% volume growth for the quarter.
But the company’s beauty and baby, feminine and family care divisions continued to struggle. Both units saw volume fall 1%, hurt by lower demand for its pricey SK-II skin-care brand and diapers, respectively.
For fiscal 2025, P&G anticipates core net earnings per share in a range of $6.91 to $7.05. The company reiterated its revenue outlook of 2% to 4% growth.