Procter & Gamble record very strong earnings on price hikes

Procter & Gamble reported slightly better fiscal quarter results than Wall Street had anticipated due to higher prices.

CEO Jon Moeller stated that consumers remain strong and seek brands they know and trust. P&G benefits from a decline in commodity prices, particularly in petro and pulp prices, but labour costs and foreign exchange remain headwinds.

An improved inflation outlook and higher prices on products like Tide led to a better than expected fiscal fourth quarter. Sales and profit grew in all company segments, and shares are trading higher. Organic sales growth was 8%, with every category growing, and half of the portfolio growing double digits.

The US market saw a 6% value share increase and a 50-basis point increase in volume share. The company’s earnings growth was 13% core earnings per share growth. Moeller noted modest volume declines in some businesses, but in the US, volume plus 3 was observed, indicating consumer remains strong and values brands that are known and trusted.