Oct 19 – – Procter & Gamble Co. beat quarterly sales and profit estimates Wednesday, helped by price hikes on everything from Head & Shoulders shampoo to Tide detergent, despite a $ 1 hike heavily impacting its revenue from foreign markets.
Shares in the company were up 2% before the market opened as the company also maintained its organic sales growth forecast for the full year.
The demand for consumer goods for the home has so far declined at a slower pace than for discretionary items such as clothing and electronics, as consumers prioritize spending on essentials.
However, with inflation stuck at a 40-year high, some retailers, worried they won’t be able to clear overcrowded shelves, are starting to push back price increases from P&G and other companies.
P&G said average prices for its product lines increased 9% in the first quarter ended September 30, while sales volumes fell 3%.
The consumer goods giant, which derives more than half of its revenue from international markets, said a stronger dollar would hit annual sales by 6 percentage points, compared to a previous forecast of 3 percentage points.
The company said it expects fiscal year 2023 sales decline between 1% and 3%, compared to the previous forecast of 2% growth. He also said his full-year earnings would be in the low end of his previous earnings forecast of nearly flat 4% growth.
On an adjusted basis, detergent maker Tide earned $ 1.57 per share on net sales of $ 20.61 billion. Analysts had estimated earnings of $ 1.54 per share on sales of $ 20.28 billion, according to data from IBES by Refinitivo.
