Procter & Gamble sales rise slightly, fueled by higher prices

Earnings

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Tide laundry detergent is shown on display in Compton, California, U.S., January 10, 2017. 
Mike Blake | Reuters

Procter & Gamble reported its quarterly earnings before the bell Friday.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.37 vs. expected $1.32
  • Revenue: $20.55 billion, vs. expected $19.98 billion

The company, which makes Tide detergent, Crest toothpaste and Gillette razors, has been raising prices on its goods for nearly two years to mitigate increasing commodity costs. Its prices were up 10% in the company’s fiscal third quarter compared with the year-ago period.

But those higher price tags have had the effect of scaring off customers, who are switching to cheaper private label options or buying those products less often. Last quarter, P&G’s volume fell 3%.

Still, P&G hasn’t seen the same drop in demand in the U.S., its largest market. And China, its second-largest market, is bouncing back from a Covid-related slump.

Looking to fiscal 2024, Wall Street is anticipating the company’s earnings per share will grow 8.8% and revenue will increase 4.5%.

P&G shares have risen just 1% this year, giving the company a market value of $361 billion.

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