Containers of Tide detergent on grocery store shelves.
Richard Levine | Corbis | Getty Images
Procter & Gamble on Wednesday reported quarterly earnings and revenue that topped analysts’ estimates as higher pricing offset lower demand for its products.
But the maker of Tide detergent, Charmin toilet paper and Pampers diapers also said it’s expecting foreign currency to hit its fiscal 2023 results more than previously expected. P&G said it’s now forecasting earnings per share on the low end of its prior range of flat to up 4%.
The stock rose 1.8% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.57 vs. $1.54 expected
- Revenue: $20.61 billion vs. $20.28 billion expected
P&G reported fiscal first-quarter net income of $3.94 billion, or $1.57 per share, down from $4.11 billion, or $1.61 per share, a year earlier.
Net sales rose 1% to $20.61 billion, topping expectations of $20.28 billion. Unfavorable foreign exchange rates dragged revenue down by 6%.
Organic revenue, which strips out the impact of acquisitions, divestitures and foreign currency, climbed 7% in the quarter. Higher prices fueled organic sales growth and offset volume declines of 3% as some shoppers reached for cheaper alternatives instead.
To mitigate rising costs, the company has been raising prices on products, but the strategy has been hurting consumer demand for its products, leading to shrinking volume for the last two fiscal quarters.
For fiscal 2023, P&G’s net sales are expected to decline 1% to 3%, lower than its previous outlook of flat to up 2%, due to foreign currency.
This story is developing. Please check back for updates.