Earnings Results
U.S. consumer is holding up and not trading down to cheaper private-label products, says CEO
Procter & Gamble’s third-quarter earnings got a lift from higher prices.
Procter & Gamble Co.’s stock rose 3.5% Friday after the consumer goods giant’s fiscal third-quarter results topped Wall Street’s estimates, boosted by price hikes for household items like Tide detergent, Bounty kitchen paper and Pampers diapers.
The company PG said it raised prices by about 10% across its brands, which are grouped into beauty, grooming, healthcare, fabric & home care, and baby, feminine and family care.
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Today, Procter & Gamble Co. reported better-than-expected earnings for the last quarter, largely due to higher prices for its Pampers diapers and Bounty kitchen paper.
The Cincinnati-based company reported that net sales were $17.1 billion with organic sales up 6%. After adjusting for one-time items, the company generated earnings of $1.53 per share, higher than the expected $1.44.
CEO David Taylor said, “We delivered strong results this quarter driven by strong organic sales growth and margin expansion despite a difficult macro environment and significant foreign exchange headwinds.” He also stated that Procter & Gamble was able to increase prices in certain areas such as diapers and paper towels due to increasing demand.
Procter & Gamble, who is the world’s largest consumer goods company, recorded a 13% increase in their baby-care division. It also noted that the pandemic had created an opportunity to push forward its long-term strategies such as focusing on innovation and expanding its e-commerce business.
Overall, this quarter’s earnings results show that Procter & Gamble is succeeding in a challenging environment, as higher prices for its core brands such as Pampers and Bounty are continuing to bring in revenue.
