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P&G raises sales as commodity costs climb

P&G’s fiscal first-quarter sales rose 4 percent to 23.28 billion dollars, while adjusted earnings exceeded analyst expectations. The consumer goods group increased its forecast for the annual commodity cost headwind to 1.4 billion dollars after tax. Its higher total-sales growth forecast reflects the completed Thorne acquisition; other annual guidance remained unchanged.

Economics & Markets··Evening
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Quarterly sales exceed the analyst estimate

P&G, the consumer goods group behind Tide detergent and Crest toothpaste, increased fiscal first-quarter sales by 4 percent. It reported revenue of 23.28 billion dollars. The company also reported core earnings per share of 2 dollars for the quarter.[1], [2]

Sales exceeded the 22.80 billion dollar estimate from analysts surveyed by FactSet, the financial data provider. Adjusted earnings of 2 dollars a share surpassed their expectation. Beauty, grooming, and fabric and home care were the fastest-growing categories, while price increases made a small contribution to sales.[1]

The annual commodity headwind rises to 1.4 billion dollars

Higher oil prices increased P&G’s expected commodity bill. The group now forecasts an annual after-tax headwind of 1.4 billion dollars, compared with the 1 billion dollars assumed in July. Stronger sales helped cushion the pressure from rising inputs. Chairman and chief executive Shailesh Jejurikar said geopolitical and economic challenges were expected to continue.[1]

The Thorne purchase lifts the total-sales forecast

P&G raised its forecast for total annual sales growth from 1–3 percent to 2–4 percent to reflect its acquisition of Thorne Healthtech, completed on October 1. The change includes the acquired business. Other annual guidance remained unchanged, and management said the quarter kept the company on course for its existing guidance ranges.[1]

References

  1. News sourceDow Jones NewswiresP&G sales rise as its commodity cost forecast climbs↩1↩2↩3↩4
  2. News sourceProcter & GambleP&G raises quarterly sales and maintains core earnings growth guidance↩
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