Proctor & Gamble Reported Better-than-Expected Quarterly Earnings
Jan 19, 2022 By MarketDepth
Procter & Gamble (NYSE: PG) reported better-than-expected quarterly earnings on Wednesday, as price boosts helped it combat increasing commodity and freight costs. Additionally, the company has experienced a surge in demand for cleaning products amid a spike in Covid-19 infections.
Revenue Higher than Expected
The multinational consumer goods corporation reported earnings of USD1.66 per share, compared to the expected USD1.65 a share. Revenue amounted to USD20.95 Billion, higher than analysts anticipated USD20.34 Billion.
“We delivered very strong top-line growth and made sequential progress on earnings in the face of significant cost headwinds. These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners. Our focus remains on the strategies of superiority, productivity, constructive disruption and continually improving P&G’s organization structure and culture. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to deliver balanced growth and value creation.”Jon Moeller, President and Chief Executive Officer
Additional price increases are set to be implemented. During a conference call with analysts, executives revealed that it had already spoken to retailers about price hikes planned for fabric care products, like Tide detergent and Downy dryer sheets, to take effect Feb. 28.
Inflation Forecast Increased
P&G increased its inflation forecast for the second quarter in a row. It expects to pay USD2.3 Billion after-tax in commodity costs andUSD300 Million after-tax due to rising freight costs.