Procter & Gamble Co. (PG) - Get Report posted stronger-than-expected fourth quarter earnings Thursday, and issued a robust profit forecast for the coming fiscal year, as fabric and home sales offset slumping revenues in skin and personal care.
Procter & Gamble said core profits for the three months ending in June, the group's fiscal fourth quarter, were pegged at $1.16 per share, up 5.5% from the same period last year and 15 cents ahead of the Street consensus forecast. Group revenues, Procter & Gamble said, rose 3.5% from last year to $17.7 billion, again beating analysts' estimates of a $17 billion tally.
Fabric and home care sales, which include cleaning products such as Comet, Joy, Febreze and Cascade, rose 14% from last year, while baby, feminine and family care segment sales were 5% higher and beauty sales rose 3%. Personal grooming sales, which includes skin care products, fell 1% from last year, Procter & Gamble said.
Looking into its 2021 fiscal year, Procter & Gamble said it sees organic sales growth of between 2% and 4%, with core earnings growth in the range of 3% to 7% from the 2020 total of $5.12 per share, a stronger forecast than analysts had been anticipating.
“We are prioritizing employee health and safety, maximizing availability of P&G products, which play an essential role in meeting the daily health, hygiene and cleaning needs of consumers around the world, and helping society meet the challenges of the COVID crisis," said CEO David Taylor. "We expect to grow through this crisis and come out even stronger on the other side."
“We delivered strong, balanced sales and profit results in fiscal 2020, both pre-COVID and through the balance of the year, meeting or exceeding each of our going-in targets, demonstrating the commitment and agility of P&G people and the robustness of our strategy,” he added.
Procter & Gamble shares were marked 1.9% higher in early trading immediately following the earnings release to change hands at $130.69, a move that would lift the stock's year-to-date gain to around 5%.