Procter & Gamble expects sales growth of 5% to 6% in fiscal 2021, up from an initial outlook of 3% to 4%, according to the company’s press release. Sales rose 8% in the second fiscal quarter, boosted by higher demand for cleaning products and shaving and styling products during the pandemic.
- P&G forecasts that its adjusted earnings will increase 8% to 10%, up from the previous target of 5% to 8%.
- The company’s earnings per share was $1.64, adjusted, up from the expected $1.51.
- Revenue was $19.75 billion, more than expected $19.27 billion, while net sales was $19.75 billion, topping expectations of $19.27 billion.
- The quarter’s net income was $3.85 billion, or $1.47 per share, up from $3.72 billion, or $1.41 per share, a year earlier.
- P&G’s fabric and home care segment saw organic sales rise 12% in the quarter, the company’s largest increase by business unit.
- Home care, which includes Comet cleaning products, saw organic sales growth of 30%, while the health care segment had a 9% jump.
- The grooming segment and the baby, feminine, and family care segment saw organic sales rise 6%, beauty segment gained 5%, while grooming appliances jumped 20%.
- P&G anticipates a fall in demand for products that experienced significant sales surges, but other products weakened by recent trends are expected to bounce back.
- The company predicts the disappearance of “some very strong headwinds,” like supply chain challenges.
- In fiscal 2021, P&G is forecasting foreign currency headwinds that will cost about $100 million after-tax and higher freight costs amounting to $100 million after-tax.
- The company also expects a share buyback of $10 billion in 2021, up from a prior estimate of $7 billion to $9 billion.
P&G stock is currently declining. PG: NYSE is down 0.30% on premarket.
