CINCINNATI — Procter & Gamble Co. today reported earnings and revenue that topped analysts’ expectations for its fiscal third quarter, citing a 2% increase in unit sales, the first such increase in a year.
P&G said net sales rose 7% to $21.24 billion in its third quarter. Organic sales were up 3%.
“We’re increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year,” Shailesh Jejurikar, P&G’s chief executive officer, said in an earnings statement.
P&G reiterated its guidance despite expectations that higher commodity costs will erode after-tax profits by about $150 million. The company warned of a roughly $1 billion hit from surging oil prices due to war in the Middle East.
"A lot of our materials are petrol-based, so with oil at around $100, there's a significant impact in terms of input cost," Andre Schulten, the company’s chief financial officer, said during an earnings call with investors.
P&G's volumes rose in three of its five segments in the quarter, helped by product launches including Pantene shampoo and Olay skin cream.
Volumes were up across its personal care, skin care and hair care categories.
Volume growth in its beauty division, which includes Olay, Pantene, and Head & Shoulders, increased 5%. The baby, feminine and family care segment saw volume increase 3%. The company saw higher demand for its diapers and family care products, which include Bounty paper towels and Charmin toilet paper. P&G’s fabric and home care division reported that volume rose 2% in the quarter, aided by increased demand for its Tide detergent.
Grooming and health care were the two laggards of the portfolio. The grooming segment, which includes Gillette and Venus products, saw volume fall 2%. Health care, which includes Oral-B and Vicks, also reported a 2% decline in volume.
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