Procter & Gamble (PG) Q4 2020 earnings

Detail view of rolls of Charmin toilet paper in a domestic home, San Ramon, California, March 25, 2020.

Smith Collection | Gado | Getty Images

Procter & Gamble on Thursday reported strong quarterly revenue growth as consumers stuck at home bought more Tide laundry detergent and Mr. Clean products.

Shares of the company rose more than 2% in premarket trading.

Here’s what the company reported for the quarter ended June 30 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.16, adjusted, vs. $1.01 expected
  • Revenue: $17.7 billion vs. $16.97 billion expected

P&G reported fiscal fourth-quarter net income of $2.8 billion, or $1.07 per share, up from a loss of $5.2 billion, or $2.12 per share, a year earlier.

Excluding items, the company earned $1.16 per share, topping the $1.01 per share expected by analysts surveyed by Refinitiv.

Net sales rose 4% to $17.7 billion, beating expectations of $16.97 billion. Organic sales, which strip out the impact of currency fluctuations, acquisitions and divestitures, rose 6% during the quarter.

The company attributed the growth to higher demand in North America and China, its second-largest market, for its household cleaning and personal health products. Its fabric and home care segment, which includes Tide and Comet cleaning products, saw organic sales rise 14% in the quarter.

P&G’s baby, feminine and family care segment reported the second-highest increase to its organic sales, which rose 5%. The category includes Pampers diapers, Bounty paper towels and Charmin toilet paper. 

Its beauty products, which include Olay and Pantene, saw organic sales growth of 3%. Organic sales of its pricey SK-II skincare line fell by double digits, driven by travel disruptions related to the pandemic.

The company’s health care segment reported organic sales growth of 2%. Organic sales of its oral care products, which include Crest and Oral-B, fell as dentist offices and electronics stores closed. But the segment’s personal health care products, including Vicks and Pepto-Bismol, saw organic sales grow by double digits.

P&G’s grooming business was once again the only segment to report shrinking organic sales. The company said that some markets are shaving less due to the pandemic, leading to a mid-single digits decline for its shave care business, which includes Gillette and Venus.

In fiscal 2021, the company expects overall sales growth of 1% to 3% and organic revenue growth of 2% to 4%. It is forecasting earnings growth of 6% to 10%. 

P&G also said that it expects to pay out $8 billion in dividends and buy back $6 billion to $8 million in its own shares in fiscal 2021.

This story is developing. Please check back for updates.

Comments are closed.