- P&G revised its full-year core EPS growth forecast down to 2% to 4%, from the earlier 5% to 7%.
- Organic revenue growth expectation has been trimmed to 2%, compared to the previous forecast of 3% to 5%.
- Projected core EPS for the year is now in the range of $6.72 to $6.82, down from a prior estimate of $6.91 to $7.05.
- For the third quarter, P&G reported a core EPS of $1.54, slightly surpassing the estimate of $1.53.
- Net sales for the third quarter came in at $19.78 billion, below the estimate of $20.22 billion.
- Beauty revenue reached $3.49 billion, falling short of the anticipated $3.51 billion.
- Grooming revenue was $1.51 billion, slightly less than the $1.52 billion estimate.
- Healthcare revenue stood at $2.88 billion, below the $2.94 billion estimate.
- Fabric & Home Care revenue was $6.95 billion, missing the $7.24 billion estimate.
- Baby, Feminine & Family Care revenue reported at $4.76 billion, lower than the estimated $4.99 billion.
- The foreign currency impact on sales was negative 2%, exceeding the estimated 1.73% drop.
- Price impact contributed to a 1% increase, just shy of the expected 1.02%.
- The company saw no growth in organic volume, against an anticipated growth of 1.2%.
- Overall organic revenue grew by 1%, below the estimate of 2.53%.
- Beauty organic sales rose by 2%, exceeding estimates of 1.62%.
- Grooming organic sales increased by 3%, surpassing the estimated 1.59%.
- Healthcare organic sales grew by 4%, aligning closely with the 3.99% estimate.
- Fabric & Home Care organic sales remained flat, below the expected 2.7% growth.
- Baby, Feminine & Family Care organic sales declined by 1%, contrary to the expected 2.82% increase.
- The gross margin was 51%, slightly below the estimated 51.5%.
- Adjusted free cash flow was $2.85 billion, falling short of the $3.69 billion estimate.
- P&G expects a commodity cost headwind of about $200 million after tax in fiscal 2025.
- The company forecasts unfavorable foreign exchange rates as a $200 million after-tax headwind, down from a previous $300 million estimate.
- Capital spending for fiscal 2025 is projected to be in the range of 4% to 5% of net sales.
- Adjustments to the outlook are reflective of underlying market conditions, according to P&G’s CEO.
Procter & Gamble Co on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Procter & Gamble Co (P&G) and recently published a report titled “Procter & Gamble (P&G): Its Efforts Towards Brand Investment & Marketing! – Major Drivers.” The report highlights P&G’s resilience in the face of external challenges, with the company delivering steady performance in its latest quarterly results. P&G showed organic sales growth of 3%, driven by volume and mix contributions, while maintaining consistent pricing. Despite facing operational hurdles like a global transportation management outage, P&G managed to support strong customer orders, impressing analysts with its operational resilience.
A look at Procter & Gamble Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Procter & Gamble Co, a global consumer products manufacturer, has received positive Smart Scores across various key factors. With a strong score in Resilience and Momentum, the company showcases stability and strong market performance. These scores indicate a promising outlook for the company’s long-term growth and sustainability in the consumer goods market.
The company’s focus on Value, Dividend, and Growth, though not the highest, demonstrates a balanced approach towards maximizing shareholder value and ensuring steady expansion. Procter & Gamble’s diverse product portfolio in laundry, cleaning, beauty, food, and healthcare segments further solidifies its position in the market, with products being widely accessible through various retail channels worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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