Shares of the company rose about 2% in pre-market trading.
Here’s what the company reported for the quarter ended June 30 compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.16, adjusted, vs. $ 1.01 expected
- Turnover: 17.7 billion dollars against 16.97 billion dollars expected
P&G reported fourth-quarter net income of $ 2.8 billion, or $ 1.07 per share, compared with a loss of $ 5.2 billion, or $ 2.12 per share, a year earlier.
Excluding items, the company gained $ 1.16 per share, exceeding the $ 1.01 per share expected by analysts polled by Refinitiv.
Net sales rose 4% to $ 17.7 billion, beating expectations of $ 16.97 billion. Organic sales, which remove the impact of currency fluctuations, acquisitions and divestitures, increased 6% in the quarter.
The company attributed the growth to higher demand in North America and China, its second-largest market, for its household cleaning and personal health products during the coronavirus crisis. Its fabrics and home care segment, which includes Tide and Comet cleaning products, saw organic sales increase 14% in the quarter.
P&G’s baby, women’s and family care segment recorded the second-highest increase in organic sales, up 5%. The category includes Pampers diapers, Bounty paper towels, and Charmin toilet paper.
Its beauty products, which include Olay and Pantene, recorded organic sales growth of 3%. Organic sales of its expensive SK-II skincare line have fallen by double digits, due to travel disruptions linked to the pandemic.
The company’s healthcare segment recorded organic sales growth of 2%. Organic sales of its oral care products, which include Crest and Oral-B, have slumped due to the closure of dental offices and electronics stores. But personal health care products, including Vicks and Pepto-Bismol, saw organic sales grow by double digits.
P & G’s grooming business was once again the only segment to report declining organic sales. The company said some markets are shaving less as a result of the pandemic, leading to a single-digit drop in its shaving business, which includes Gillette and Venus.
In fiscal 2021, the company expects overall sales growth of 1% to 3% and organic revenue growth of 2% to 4%. He predicts earnings growth of 6% to 10%.
P&G also said it plans to pay $ 8 billion in dividends and repurchase between $ 6 million and $ 8 million of its own shares in fiscal 2021.
This story is developing. Please come back for updates.