Procter & Gamble recently reported its quarterly results, which showed a mixed performance. However, one positive highlight was the increase in the company’s volume for the first time in over two years. This is an important metric as it excludes pricing, giving a more accurate reflection of demand compared to sales figures.
The company’s earnings per share came in at $1.40 adjusted, slightly beating Wall Street’s expectations of $1.37. On the revenue front, Procter & Gamble reported $20.53 billion, falling short of the expected $20.74 billion. The net income attributable to the company for the fourth quarter was $3.14 billion, or $1.27 per share, showing a decline from the previous year’s figures.
Segment Performance
Despite the overall volume increase, Procter & Gamble’s different segments showed varied performance. The grooming, health care, and fabric and home-care products segments experienced a 2% growth in volume. On the other hand, the beauty and baby, feminine and family care divisions struggled with a 1% decline in volume.
Challenges in certain Segments
The decline in volume in the beauty and baby, feminine and family care divisions can be attributed to lower demand for specific products like the SK-II skin-care brand and diapers. This indicates a need for the company to reevaluate its strategies in these segments to reignite growth and consumer interest.
Looking ahead to fiscal 2025, Procter & Gamble anticipates core net earnings per share in the range of $6.91 to $7.05. The company also reiterated its revenue outlook, expecting a 2% to 4% growth. This guidance provides insight into the company’s expectations and plans for the upcoming quarters.
Procter & Gamble’s quarterly results reflect a mix of positive and challenging aspects. While the increase in volume is a promising development, the struggles in certain segments highlight the need for strategic adjustments. As the company moves forward, focusing on areas of growth and addressing challenges will be crucial for sustained success in the competitive consumer goods market.