04.19.24
The Procter & Gamble Company (P&G)'s Q3 2024 results fell short of expectations.
The company reported revenue was $20.2 billion, an increase of 1% versus the prior year. However, shares of the company fell 1% in premarket trading. Earnings per share were $1.52 versus $1.41 expected and $20.2 billion versus $20.41 billion expected.
Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 3%.
The company reported revenue was $20.2 billion, an increase of 1% versus the prior year. However, shares of the company fell 1% in premarket trading. Earnings per share were $1.52 versus $1.41 expected and $20.2 billion versus $20.41 billion expected.
Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 3%.
P&G President and CEO Jon Moeller said the company is increasing investments "in superiority" to drive market growth and sustain "strong momentum."
“We delivered solid sales and strong earnings growth in the third quarter despite multiple headwinds, enabling us to raise our EPS growth guidance and maintain our top-line outlook for the fiscal year,” said Moeller. “We remain committed to our integrated strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization."
Beauty segment organic sales increased 3% versus year ago. Skin and personal care organic sales declined low single digits due to lower sales of the super-premium SK-II brand, partially offset by volume growth from innovation in personal care. Hair care organic sales increased high single digits driven by increased pricing in Latin America, Europe and North America.
Grooming segment organic sales increased 10% versus year ago driven primarily by higher pricing in Latin America and Europe. Volume growth was partially offset by unfavorable product mix.
Fabric and home care segment organic sales increased 3% versus year ago. Fabric care organic sales increased low single digits due to increased pricing and favorable geographic mix due to growth in North America and Europe. Home care organic sales increased high single digits due to increased pricing and volume growth from innovation.
Fiscal Year 2024 Guidance
P&G maintained its guidance range for fiscal 2024 all-in sales growth to be in the range of 2 to 4% versus the prior year. Foreign exchange is expected to be a headwind of approximately one to two percentage points to all-in sales growth. The company also maintained its outlook for organic sales growth in the range of 4 to 5%.