P&G beats quarterly results on steady demand, higher pricing

(Reuters) -Procter & Gamble beat analysts’ estimates for quarterly sales and profit on Friday, as the consumer goods giant benefited from multiple price hikes and resilient demand for its cleaning products, paper towels and other household products.

The company’s shares rose about 1.5% in premarket trading.

The results, like those from Unilever (NYSE:) and Nestle, indicate how major global consumer product and food makers have managed to raise prices enough to offset recent increases in transportation, commodity and labor costs.

Investors are currently raising concerns about when and if the recent price hikes will start to turn shoppers off companies’ brand name products. Many consumers around the world face relatively high costs of living, including rising interest rates that affect households budgets.

P&G’s overall volumes fell 1% in the fourth quarter and the company flagged lower volumes, primarily in Greater China. Average prices across its product categories increased 7%.

In comparison, the company had hiked prices by 10% in the third quarter, and its sales volume fell 3%.

P&G forecast fiscal 2024 profit per share growth in the range of 6% to 9%, equating between $6.25 and $6.43 per share with a mid-point of $6.34, compared to analysts’ estimates of $6.38.

Rival Kimberly-Clark Corp (NYSE:) had on Tuesday raised its annual sales and profit forecasts. The maker of Kleenex tissues and KleenGuard said it increased product prices 8% in its second fiscal quarter, while sales volumes fell 3%.

P&G said it expects a net benefit of around $400 million after-tax from favorable commodity costs in fiscal 2024 net of currency fluctuations.

The Tide detergent maker’s fourth-quarter net sales rose to $20.55 billion from $19.52 billion, a year earlier.

Analysts on average had expected $19.98 billion, according to IBES data from Refinitiv.

On an adjusted basis, the company earned $1.37 per share, beating estimates of $1.32.