P&G Profits as Shoppers’ Stockpile
Procter & Gamble Co beat Wall Street expectations in the stock market for quarterly profit on Friday. Consumers have stockpiled on everything from diapers and detergent to toilet rolls amid sweeping lockdown orders from the U.S. government.
Sales at P&G’s units rose between 6% and 8%, bo osting the company’s shares in early trading. It is the maker of well-known brands such as Bounty paper towels, Tampax tampons, Charmin toilet paper, and Pampers diapers.
Chief Executive Officer David Taylor said they have delivered strong results this quarter. It is a direct reflection of the integral role their products play. This is in meeting the daily health, hygiene and cleaning needs of consumers around the world.
P&G was one of the first consumer products companies to report results for the January-March quarter. This was during the rapid spread of COVID-19 pandemic across the world, prompting panic buying on fears of stringent lockdowns.
Supermarkets like Kroger and Costco have reported a surge in sales in March. This has forced them to limit the number of customers in stores and hours in the morning to senior citizens.
Procter & Gamble stocks are making one of the best moves in the premarket.
While everyday essentials became in demand, sales of beauty and grooming products dwindled as people stay indoors. Sales decreased at its beauty segment, which sells premium skincare products like SK-II, as well as its grooming unit.
P&G Demands in North America, Europe and Asia
According to P&G, organic shipment volume rose 6% on strong demand in North America and certain European markets. But volumes decreased in certain Asian markets as stores remained closed.
Moreover, the company raised its dividend earlier this week and advanced its results. The last time the company advanced its earnings date was when Trian started a proxy contest. It led to Nelson Peltz joining the company’s board after a showdown.
For the third quarter ending on March 31, P&G net sales rose about 5% to $17.21 billion. The rise was due to consumers stocking up during the last few weeks of the quarter in the United States.
According to IBES data from Refinitiv, analysts were expecting sales of $17.46 billion.
Stock trading reports, the company earned $1.17 per share excluding one-time items, beating Wall Street estimates by 4 cents. Net earnings attributable to the company increased by 6.3% to $2.92 billion.
To account for currency fluctuation, P&G cut its full-year sales growth target to 3%-4% from its prior forecast of 4%-5%.
