- Procter & Gamble Co PG reported first-quarter FY22 sales growth of 5% year-on-year, to $20.34 billion, beating the analyst consensus of $19.84 billion.
- Organic sales increased 4%, driven by a 2% increase in shipment volume, a 1% increase in pricing, and a favorable mix impact of 1%.
- Sales in the beauty segment rose 5%, the Grooming segment expanded 5%, and Health Care jumped 8%.
- Gross profit decreased 2% Y/Y to $9.97 billion. The reported gross margin decreased by 370 basis points to 49.0%.
- The operating margin contracted 260 basis points to 24.7%, while operating income for the quarter fell 5% to $5 billion.
- P&G generated an operating cash flow of $4.6 billion for Q1 and held $10.4 billion in cash and equivalents as of September 30, 2021.
- EPS of $1.61 beat the analyst consensus of $1.59.
- "We delivered solid results in our first quarter of fiscal 2022 in a challenging cost and operating environment," said CEO David Taylor.
- Outlook: P&G continues to expect FY22 all-in sales growth and organic sales growth of 2% - 4%.
- The company expects GAAP EPS growth of 6% - 9%. Core EPS growth of 3% - 6% from $5.66 in FY21, representing $5.83 - $6.00 versus the consensus of $5.94.
- The company said its current outlook estimates headwinds of $2.1 billion after-tax from higher commodity costs and an additional $200 million after-tax from higher freight costs.
- P&G expects to pay over $8 billion in dividends and repurchase $7 billion - $9 billion of common shares in FY22.
- Price action: PG shares are trading lower by 2.02% at $139.47 in premarket on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
