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Procter & Gamble (PG) Q4 2022 Earnings

Tide, Procter & Gamble’s laundry detergent, is seen on a store shelf on October 20, 2020 in Miami, Florida.

Joe Raedle | Getty Images

Procter & Gamble reported mixed quarterly results on Friday as the consumer products giant faced rising commodity costs and warned it expects such headwinds to continue into fiscal 2023.

The Cincinnati-based maker of products including Pampers, Pantene and Tide said higher prices during its fourth quarter offset a drop in sales volume, which it blamed mainly on lockdowns related to the Covid pandemic that reduced operations in China and Russia.

The company’s shares closed down about 6%.

Here’s how the company compares to what Wall Street expected, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.21 adjusted vs $1.22 expected
  • Revenue: $19.52 billion vs. $19.4 billion was expected

For the three months ended June 30, P&G reported revenue of $3.05 billion, or $1.21 per share. In the year-ago period, it posted net income of $2.91 billion, or $1.13 per share.

Net sales increased 3% from a year ago, driven by 9% organic sales growth in both the healthcare and fabric and home care units, where higher prices offset flat and negative volumes, respectively.

In a media call, P&G Chief Financial Officer Andre Schulten attributed the flat and negative volume to a reduction in business in Russia and said he was confident “the consumer is holding up well” as the company raised prices.

However, executives addressed concerns about vendor pricing on the earnings conference call. Schulten said P&G’s discussions with Walmart “remain productive” and that the companies’ “interests are aligned” to combat inflation. He said P&G remains committed to supporting its strategy of offering multiple price points for consumers, especially for products like diapers.

By fiscal 2023, P&G expects earnings per share to rise to 4%. It anticipates a $3.3 trillion windfall due to higher exchange rates, higher commodity costs and higher freight costs.

The company expects annual sales to rise 2% from a year ago. Organic sales, which strip out the impact of exchange rates, are expected to rise 3% to 5%, driven by pricing.

Read the full earnings release here.

Procter & Gamble (PG) Q4 2022 Earnings

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