Procter & Gamble (P&G) reported quarterly earnings and revenue that exceeded analysts' expectations, driven by the first company-wide volume growth in a year. The company posted adjusted earnings per share of $1.63, surpassing the expected $1.56, and revenue of $21.24 billion, above the anticipated $20.5 billion, according to LSEG analyst surveys [1]. Net income attributable to P&G was $3.93 billion, or $1.63 per share, up from $3.78 billion, or $1.54 per share, in the same quarter last year. Net sales rose 7% to $21.24 billion, while organic sales, which exclude acquisitions, divestitures, and currency effects, increased by 3% [1].
Volume, a key indicator of demand that excludes pricing effects, increased 2% across the company, marking a turnaround after a year of declining volumes. The beauty division, which includes brands such as Olay, Head & Shoulders, and Pantene, led the growth with a 5% increase in volume, supported by gains in personal care, skin care, and hair care categories. The baby, feminine, and family care segment saw a 3% volume rise, reflecting higher demand for diapers and family care products like Bounty and Charmin. Fabric and home care volumes rose 2%, driven by increased North American demand for Tide detergent [1].
However, not all segments performed equally. The grooming segment, which includes Gillette and Venus, saw a 2% decline in volume, as did the health care segment, which houses Oral-B and Vicks [1]. Despite these laggards, the overall positive performance led to a 4% rise in P&G shares during premarket trading [1].
Looking ahead, P&G reiterated its full-year forecast, expecting sales growth between 1% and 5% and net earnings per share growth in the range of 1% to 6%. CEO Shailesh Jejurikar stated that the company is increasing investments to accelerate consumer momentum, even amid challenging geopolitical and economic conditions, while maintaining its fiscal year guidance [1].
CONCLUSION
Procter & Gamble delivered a strong quarterly performance, beating both earnings and revenue estimates and achieving company-wide volume growth for the first time in a year. The positive results and maintained guidance signal confidence in continued momentum, reflected in the 4% premarket share price increase.