Procter & Gamble beat Wall Street forecasts in the first quarter on the back of higher pricing.
The consumer goods giant, whose brands include Oral-B, Head & Shoulders, Olay, Gillette, SK-II and Pampers, saw first-quarter fiscal year 2024 net sales come in at $21.9 billion, up 6 percent versus a year ago and slightly above Wall Street forecast of $21.58 billion. Earnings per share were $1.83, also surpassing estimates of $1.72.
“We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver toward the higher end of our fiscal year guidance ranges for organic sales and core EPS growth,” said Jon Moeller, chairman of the board, president and chief executive officer. “The P&G team’s execution of this strategy has enabled us to build and sustain strong momentum. We have confidence this remains the right strategy to deliver balanced growth and value creation.”
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Within that, beauty segment organic sales increased 5 percent. Skin and personal care organic sales grew low-single digits as higher pricing and innovation-based volume growth were partially offset by lower sales of SK-II. Hair care organic sales increased high-single digits, driven primarily by increased pricing.
Grooming segment organic sales increased 9 percent, as higher pricing and favorable product mix were partially offset by pricing-related volume declines.
“Overall, today’s print and reiterated outlook should quiet concerns around trade down, as P&G’s value share increased 40 basis points year-over-year and volume share was more than 50 basis points, while private label share of 16 percent across PG categories remains flat against pre-pandemic levels, a period during which P&G has built share,” said Olivia Tong, analyst at Raymond James.