Procter & Gamble misses sales expectations on slowing demand
Procter & Gamble (PG.N) missed Wall Street expectations for fourth-quarter sales on Tuesday, on weak demand for its skincare products in major market China and waning price benefits in the US and Europe for its home care products.
Shares of the Tide detergent maker fell 2.3 per cent in premarket trading.
P&G has scaled back on further price hikes and instead have been spending heavily to launch newer products like Tide Evo and diaper brand Luvs Platinum Protection that appeal to consumers looking for cheaper daily-use products.
Last week, Nestle and Unilever reported first-half sales growth below expectations, as their attempts to raise prices more slowly have not been enough to win back cost-conscious customers.
Fourth-quarter net sales for P&G slipped to $20.53 billion from $20.55 billion a year ago. Analysts had expected $20.74 billion, according to LSEG data.
On an adjusted basis, it earned $1.40 per share, beating estimates of $1.37. The company said it expects to repurchase $6 to $7 billion of common shares in fiscal 2025.
P&G reported a 1 per cent rise in overall volumes in the fourth quarter, while the average prices across its product categories also rose 1 per cent.
The consumer goods giant expects core earnings to rise between $6.91 and $7.05 in fiscal 2025, compared with analysts’ expectations of $6.97 per share.
P&G expects sales growth in the range of 2 per cent to 4 per cent for fiscal 2025, compared with analysts’ expectation of a 3.04 per cent rise.