Boxes of Bounce dryer sheets owned by Procter & Gamble are seen on store shelves in Miami, Florida, on October 20, 2020.
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Procter & Gamble Revenue reported on Friday was lower than expected as falling demand in China again weighed on its sales.
The company’s shares fell 1% in premarket trading.
The company’s report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $1.93, $1.90 expected
- Revenue: $21.74 billion, $21.91 billion expected
Procter & Gamble reported first-quarter net income attributable to the company of $3.96 billion, or $1.61 per share, down from $4.52 billion, or $1.83 per share, in the same period last year.
Excluding restructuring charges and other items, the company earned $1.93 per share.
net sales fell 1% to $21.71 billion. Organic revenue, excluding foreign exchange, acquisitions and divestitures, increased 2% due to higher prices.
The company reported flat sales for the quarter. This metric does not include pricing, which makes it a more accurate reflection of demand than sales. Like many consumer goods companies, Procter & Gamble has seen demand for its products decline after several years of rising prices. Last quarter was the first time sales increased in more than two years.
Weak demand in Greater China, the company’s second-largest market, again weighed on P&G’s sales this quarter. The company noted that its hair care and oral care businesses both experienced sales declines in China.
P&G’s beauty business, which includes brands like Pantene and Olay, saw sales fall 2% in the quarter. In particular, its skin care business is in trouble, with organic sales down more than 20%. Procter & Gamble blamed the sharp decline on declining sales and sales of its pricey SK-II brand, which has been struggling since the pandemic lockdowns.
P&G’s healthcare and infant, feminine and home care units each reported a 1% sales decline for the quarter. But the baby care unit, which includes Pampers diapers, had a worse quarter, with organic sales down mid-single digits.
P&G’s beauty division, which includes Gillette and Venus, saw sales rise 4%. The company attributes its strong performance to innovation.
The company’s fabrics and home care business grew sales 1% in the quarter. This segment includes Swiffer, Febreze and Tide products.
P&G reiterated its fiscal 2025 forecast. Core net income per share is expected to be between US$6.91 and US$7.05, with revenue growing 2% to 4%.
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