Procter & Gamble Q3 Earnings Top Estimates; Raises FY22 Top-Line Guidance

Procter & Gamble Q3 Earnings Top Estimates; Raises FY22 Top-Line Guidance
  • Procter & Gamble Co PG reported third-quarter FY22 sales growth of 7.1% year-on-year to $19.38 billion, beating the consensus of $18.73 billion.
  • Organic sales increased 10%, driven by a 3% increase in shipment volume, 5% from improved pricing, and a 2% increase from geographic and product mix.
  • Sales in the beauty segment rose 2%, the Grooming segment expanded 3%, and Health Care jumped 13%.
  • Adjusted EPS of $1.33 beat the consensus of $1.30.
  • Gross profit decreased 1% Y/Y to $9.1 billion. Gross margin decreased by 400 basis points to 46.7%.
  • Operating margin contracted 10 basis points to 20.8%, while operating income for the quarter rose 6% to $4.02 billion.
  • P&G held $8.5 billion in cash and equivalents as of March 31, 2022.
  • Outlook: P&G raised FY22 all-in sales growth outlook to 4% - 5% (previously 3% - 4%).
  • The company continues to expect FY22 core EPS growth of 3% - 6% versus FY21 Core EPS of $5.66.
  • P&G also expects to pay over $8 billion in dividends and repurchase $10 billion of common shares in FY22.
  • Price Action: PG shares are trading higher by 1.06% at $161.10 in premarket on the last check Wednesday.

Posted In: BriefsEarningsNewsGuidanceDividendsBuybacks