Proctor & Gamble reported earnings today and beat estimates. Unfortunately, the company’s guidance suggests price hikes are here to stay (thanks inflation!)
P&G posted EPS of $1.66, beating estimates of $1.65. The company also beat on revenue — P&G reported $20.95 billion in revenue compared to estimates of $20.34 billion. Net sales saw a 6% boost.
P&G can thank the pandemic for some of its stronger segments, like fabric and home-care. Demand for cleaning products has generally increased post-pandemic, and that demand pushed P&G’s sales +8% for products like Mr. Clean or Febreze. The company also experienced a +20% boost for products like Vicks and ZzzQuil during cold/flu season. 🤒
These figures demonstrate a strong performance, but P&G’s earnings report warns of continued price increases in 2022. More specifically, P&G expects to increase the price of products like Tide Detergent and Downy Dryer Sheets in late February. Personal hygiene products will also see price increases come Spring. Lastly, the company’s strong performance in sales for razors, feminine products, diapers, and toilet paper was largely due to price hikes. 🤷
$PG traded 3.36% higher today.