PG Winning Strategy: Higher Prices Drive Q4 Earnings Growth

PG Winning Strategy : P&G’s shares rose more than 2% after outperforming expectations. P&G outperformed Wall Street in their last report. The large retailer did well in the fourth quarter. Profit was $3.38 billion, or $1.37 per share. Last year had fewer people than this year. Last year, $3.05 billion and $1.21 per share.

The corporation made more money and sold more things. They made $20.55 billion, up $5 billion. P&G made more money in the quarter without factoring in foreign currency, acquisitions, or sales. 8% more income!

Despite doing well, P&G’s fiscal 2024 predictions predict slower growth. The company expects 3%–4% sales growth. Wall Street forecasts 4.5%. P&G expects 6%–9% profit per share growth. Experts predict 8.8%.

The company’s money manager, Andre Schulten, said next year may be more up and down and that the corporation faces many difficult issues.

PG Winning Strategy

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Due to falling product prices, the company made $400 million after taxes. Even though currency exchange rates have worsened things.

P&G has been raising prices for two years due to rising material costs. People are buying cheaper store brands instead, lowering the company’s sales for five quarters. P&G revenues fell 1% last quarter. Despite a 1% to 1.5% price increase, the business expects sales to rise in fiscal year 2024.

PG biggest market, the US, had 3% growth. This happened despite more people buying cheaper store brands. Europe and Asia-Pacific were uninterested.

P&G’s health-care unit, which includes Oral-B and Pepto-Bismol, had 3% lower worldwide sales. The business lost North American customers due to excessive prices. It happened in Europe and Asia-Pacific. Because China bought less Downy detergent, Tide and Febreze sales fell 2%.

PG grooming division, which sells Gillette and Venus razors, lost 1% in the past three months. Baby, women’s, family care, and beauty sales were the same during the quarter. Despite issues, P&G is a major player in the consumer goods market. Its latest revenue report shows it is performing well and has the opportunity to grow.

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