- P&G generates £13.79 billion in revenue in Q3 and makes 94 pence of earnings per share.
- Procter & Gamble posts a 10% increase in its U.S sales as consumers stockpiled essential items.
- The consumer goods corporation raised its quarterly dividend by 6% earlier this week.
Procter & Gamble (NYSE: PG) released its quarterly financial results on Friday that posted a 10% increase in sales in the United States as consumers stockpiled essential items ahead of the Coronavirus restrictions.
The American multinational consumer goods corporation, however, cut its financial guidance for 2020 citing the impact of foreign currency. Procter & Gamble was reported less than 1% up in premarket trading on Friday.
P&G’s Quarterly Financial Results Versus Analysts’ Estimates
According to Refinitiv, analysts had expected the company to print £13.99 billion in revenue in the third quarter. Their estimate for earnings per share (EPS), was capped at 91 pence per share. In its financial report on Friday, however, Procter & Gamble recorded lower revenue of £13.79 billion in the recent quarter but topped the estimate for EPS posting 94 pence of earnings per share (adjusted) in Q3.
At £2.34 million, P&G’s net income came out stronger than £2.20 billion that was recorded in the same quarter last year. The company’s net quarterly sales of £13.79 billion marked a 5% increase as compared to the year-ago figure.
Excluding the impact of acquisitions, divestitures, and foreign currency, P&G’s organic revenue came out 6% stronger in the third quarter. Its fabric and home care business that includes world-renowned brands like Ariel and Tide printed a 10% increase in organic sales in the recent quarter.
Despite the decrease in baby products demand in Procter & Gamble’s 2nd largest market, China, its segment that deals in baby and feminine products, and family care posted a 7% increase in organic sales.
The beauty segment, however, took a hit due to retail disruptions in China. P&G said that its SK-II skincare line saw a double-digit decline in sales in the third quarter.
P&G’s Guidance For Fiscal 2020
Procter & Gamble’s organic sales were down only in its grooming business that offers products from Venus and Gillette.
The company now expects a 3% to 4% increase in its sales in fiscal 2020 versus a 4% to 5% increase that it had anticipated earlier. Excluding items, the company added, it expects its adjusted earnings in fiscal 2020 to post an 8% to 11% growth.
At around £100 per share, Procter & Gamble is currently around 1% up year to date in the stock market. The £240.50 billion company announced a 6% increase in its quarterly dividend earlier this week.