Consumer Products

Procter & Gamble Fights an Uphill Battle in Q4

Procter & Gamble Co. (NYSE: PG) reported its fiscal fourth-quarter financial results before the markets opened on Thursday. The company said that it had $1.16 in earnings per share (EPS) and $17.7 billion in revenue, while consensus estimates were $1.01 in EPS and revenue of $16.97 billion. The same period of last year reportedly had EPS of $1.10 on $17.09 billion in revenue.

During the latest quarter, net sales increased 4% year over year. This was affected by unfavorable foreign exchange rates and, obviously, the COVID-19 pandemic. However, excluding forex, net sales increased 6%, primarily driven by an increase in organic shipment volume.

Organic shipment volume increased 3% as strong consumer demand for household cleaning, personal health and cleansing products in North America and certain European markets rose due to the pandemic. This was partially offset by volume decreases in other regions due primarily to temporary disruption of consumer access to retail markets related to the pandemic.

In terms of its segments, the company reported as follows:

  • Beauty net sales were flat year over year at $3.18 billion.
  • Grooming net sales decreased by 5% to $1.51 billion.
  • Health Care net sales decreased by 1% to $2.02 billion.
  • Fabric & Home Care increased by 11% to $6.29 billion.
  • Baby, Feminine & Family Care increased 3% to $4.62 billion.

Looking ahead to the 2021 fiscal full year, the company said that it expects to see core EPS growth in the range of 3% to 7% and all-in sales growth of 1% to 3%. Consensus estimates are calling for $4.95 in EPS and $70.14 billion in revenue for the full year.

Procter & Gamble stock hit a new 52-week high of $130.92 early Thursday. That is above the consensus price target of $130.69, and the 52-week low is $94.34.