Procter & Gamble reported quarterly earnings that surpassed analysts’ expectations on January 22, 2025. The company’s strong performance was driven by increased demand for essential household products, including toilet paper and laundry items, during the quarter ending December 31, 2024.
- Procter & Gamble beat quarterly earnings expectations.
- Shares rose 3% in premarket trading.
- Net income increased to $4.63 billion.
- Baby care sales declined in low-single digits.
- Health care segment reported flat volume.
- Beauty division saw 1% volume decrease.
During the latest quarter, Procter & Gamble (P&G) reported net income attributable to the company of $4.63 billion, translating to earnings of $1.88 per share. This marks an increase from $3.47 billion, or $1.40 per share, in the same period last year. The company’s revenue rose to $21.88 billion, exceeding Wall Street’s expectations of $21.54 billion. Organic revenue, which excludes currency fluctuations and divestitures, increased by 3%.
P&G’s overall volume grew by 1%, indicating a steady demand for its products despite previous price increases. Key segments contributing to this growth included:
- Baby, feminine, and family care division: 4% volume increase.
- Grooming segment (including Gillette): 2% volume increase.
- Fabric and home care division (including Tide and Swiffer): 1% volume increase.
However, the health care segment, which includes Pepto Bismol and Oral-B products, reported flat volume. The beauty division experienced a decline, with a 1% drop in volume, particularly due to lower sales in Greater China and a decrease in Olay products globally. P&G also reaffirmed its fiscal 2025 forecast, projecting core net earnings per share between $6.91 and $7.05, alongside revenue growth of 2% to 4%.
In summary, Procter & Gamble’s quarterly results reflect a solid performance driven by essential household products, with positive growth projections for the upcoming fiscal year. The company remains focused on innovation and adapting to consumer needs in a competitive market.
