THE WHAT? Procter & Gamble Q2 earnings and revenue has topped Wall Street expectations, with price hikes offsetting higher commodity and freight costs.
THE DETAILS P&G reported Q2 net income of US$4.22 billion up from $3.85 billion YOY. Net sales rose 6 percent to US$20.95 billion, beating estimates of US$20.34 billion.
The personal care division was influenced by an intense cold and flu season, growing 20 percent, with oral care brands bolstered by price increases.
Organic sales in the grooming division increased 5 percent, while baby, feminine and family care also jumped 5 percent. P&G’s beauty division reported the smallest organic sales of just 2 percent.
P&G has raised its guidance for fiscal 2022 to between 3 and 4 percent growth.
THE WHY? Jon Moeller, President and Chief Executive Officer, said, “We delivered very strong top-line growth and made sequential progress on earnings in the face of significant cost headwinds.
“These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners. Our focus remains on the strategies of superiority, productivity, constructive disruption and continually improving P&G’s organization structure and culture. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to deliver balanced growth and value creation.”