Procter & Gamble’s third-quarter results were another mixed bag.
Net sales came in at $20.2 billion, below Wall Street estimates. But diluted net earnings per share were $1.52, up 11 percent year-over-year and beating analysts’ estimates of $1.42.
Beauty segment organic sales increased three percent versus year ago. Within that, skin and personal care organic sales declined low single digits due to lower sales of the super-premium SK-II brand, partially offset by volume growth from innovation in personal care.
The SK-II brand has been hit by Chinese consumers’ boycott of Japanese beauty products due to Japan’s controversial discharge of treated wastewater from the disabled Fukushima Daiichi Nuclear Power Station.
Hair care organic sales increased high single digits, driven by increased pricing in Latin America, Europe and North America.
Grooming segment organic sales, meanwhile rose 10 percent, on the back of higher pricing in Latin America and Europe.
“We delivered solid sales and strong earnings growth in the third quarter despite multiple headwinds, enabling us to raise our EPS growth guidance and maintain our top-line outlook for the fiscal year,” said Jon Moeller, chairman of the board, president and chief executive officer. “We remain committed to our integrated strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization.”
P&G raised its fiscal 2024 diluted net earnings per share growth from a range of -1 percent to inline to a range of one to two percent versus fiscal 2023 EPS of $5.90. It also raised its core net earnings per share growth from a range of eight to nine percent to a range of 10 percent to 11 percent.
