Procter & Gamble revenue and profit fall

Procter & Gamble reported year-over-year declines in revenue and profit on Thursday, as higher prices look to offset declining sales volumes and foreign exchange headwinds.

Here’s how P&G performed in its fiscal second quarter of 2023 compared with what Wall Street anticipated, based on an average of analysts’ estimates compiled by Refinitiv:

For the three-month period ended Dec. 31, the company reported net income of $3.9 billion, or $1.59 per share, excluding items, down from $4.22 billion, or $1.66 per share, a year earlier.

Net sales fell to $20.77 billion, a 1% decrease from the previous year, which topped analyst’s projections of $20.73 billion.

The company’s organic revenue, which excludes the impact of foreign currency, acquisitions and divestitures, increased 5% during the fiscal second quarter. That rise was a result of higher pricing, which outweighed shrinking consumer demand.

All of the company’s divisions reported declining sales volume in the quarter, despite seeing increases in organic sales as a result of higher pricing. Its grooming division, which houses brands like Gillette and The Art of Shaving, and which has historically underperformed for the company, reported no sales growth — its volume declines completely canceled out its higher prices.