Procter & Gamble On Tuesday, it reported weaker-than-expected quarterly revenue as disappointing demand in China weighed on the company's results.
The company's shares fell 5% in morning trading.
Here's what the company reported compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: $1.40 adjusted vs. $1.37 expected
- Revenue: $20.53 billion versus the expected $20.74 billion
P&G reported fiscal fourth-quarter net income attributable to the company was $3.14 billion, or $1.27 per share, down from $3.38 billion, or $1.37 per share, a year earlier.
Excluding items, the company earned $1.40 per share.
Net sales Net income of $20.53 billion was virtually unchanged from the same period last year. P&G's organic revenue, which excludes foreign currency, acquisitions and divestitures, rose 2% in the quarter.
Despite disappointing sales, the company's volume increased for the first time in more than two years.
Volume excludes price, making the metric a more accurate reflection of demand than sales. In recent years, P&G's price increases across its portfolio, from diapers to detergents, boosted sales growth, but volume stagnated or even declined as consumers bought less of its products.
P&G's volume rose 1%, thanks to higher demand for its personal care, health care, and fabric and home care products. All three segments reported 2% volume growth during the quarter.
However, the company's beauty and baby care, feminine care and family care divisions continued to struggle. Both units saw volume decline by 1%, hurt by weaker demand for its high-priced SK-II skin care brand and diapers, respectively.
In North America, the company is growing market share. This quarter, volume in its home market rose 4%, executives said on the company’s earnings call. Consumers aren’t buying on the downside, given that market share for private-label products remains relatively stable. And P&G’s promotions are still 15% below pre-pandemic levels.
But China, P&G's second-largest market, remains in trouble. The company did not disclose quarterly volume for the region, but organic sales in Greater China fell 9%. Executives said underlying market conditions have remained weak. Weak demand in China contributed to the volume decline in P&G's beauty business.
For fiscal 2025, P&G expects net earnings per share of $6.91 to $7.05. The company reiterated its forecast for revenue growth of 2% to 4%.
