Procter & Gamble recently reported mixed quarterly results, but one significant highlight was the increase in the company’s volume for the first time in over two years. This rise in volume is crucial as it excludes pricing, providing a more accurate reflection of demand compared to sales.
The company’s performance in the quarter was both positive and negative. While earnings per share came in at $1.40 adjusted versus the expected $1.37, revenue was slightly below estimates at $20.53 billion as opposed to $20.74 billion expected. Procter & Gamble reported fourth-quarter net income attributable to the company of $3.14 billion, which is a decrease from $3.38 billion in the previous year.
Despite the mixed financial results, P&G’s organic revenue, which excludes foreign currency, acquisitions, and divestitures, showed a 2% increase in the quarter. This growth was driven by stronger demand for grooming, health care, and fabric and home-care products, all registering a 2% volume growth for the quarter.
On the flip side, the beauty and baby, feminine and family care divisions of Procter & Gamble continued to face challenges. These units experienced a 1% decline in volume, mainly due to reduced demand for products like the SK-II skin-care brand and diapers. This decline highlights areas where the company needs to focus on improving consumer interest and demand.
Looking ahead to fiscal 2025, Procter & Gamble is anticipating core net earnings per share in a range of $6.91 to $7.05. The company has also reiterated its revenue outlook of 2% to 4% growth, signaling confidence in its ability to navigate challenges and drive growth in the future.
While Procter & Gamble’s mixed quarterly results may have raised concerns among investors, the increase in volume and organic revenue growth are positive indicators for the company’s future. By addressing the challenges in underperforming divisions and staying committed to its financial targets, P&G can continue to drive value for its shareholders and customers.