Procter & Gamble, the American consumer goods multinational, announced that it ended its fiscal first quarter – third quarter of the year – with net income of $ 4.11 billion, or $ 1.61 per share, down from $ 4. 28 billion, or $ 1.63 per share, for the same period last year. The eps was better than the $ 1.59 expected by the consensus. Revenue, on a net basis, advanced 5% to $ 20.34 billion, better than $ 19.91 billion.
Growth in the quarter was 4% at an organic level, thus deducting the impact of acquisitions, divestments and exchange rates from the turnover.
The positive result of P & G’s balance sheet is explained by the fact that the giant has offset the increase in costs with the increase in the prices of its products. In spite of the higher costs, Procter & Gamble also reiterated the previous outlook on earnings and revenue for the full year.
P&G expects sales growth of between 2% and 4% year-on-year, and an EPS core up between 3% and 6%. That said, P&G said it also believes that after-tax commodity costs will be $ 2.1 billion, compared with freight costs of $ 200 million. The costs, the group said, will weigh on the results of fiscal year 2022. Last quarter, the company predicted that the costs of raw materials and freight transport would affect profits to a lesser extent, to a value of $ 1. 9 billion.
The American giant therefore confirmed the companies’ decision to transfer the increase in costs to prices, and the financial director Andre Schulten told the Wall Street Journal the giant’s intention to raise prices on a higher number of products for be able to manage inflation.