NEW YORK (AP) — Procter & Gamble Co., the maker of such household products like Crest toothpaste, Tide detergent and Charmin toilet paper, reported better-than-expected fiscal fourth-quarter results that showed consumers' appetite for its items even as the company continued to push up prices.
P&G increased prices by about 7% across its various brands in the latest quarter from a year ago, less than the 10% increase in the previous period. Meanwhile, the number of products it sells globally fell 1% in the quarter, less than the 3% drop during the fiscal third quarter and 6% drop in the second quarter.
That showed that the pullback to price hikes are easing.
The report offered encouraging news as there have been signs of shopper pushback to relentless price hikes by consumer products and food companies.
Conagra Brands, which makes Slim Jim beef jerky, Duncan Hines cake mix and more, said during a fourth-quarter earnings call earlier in July that smaller price increases have not translated to higher sales volume. That is a quick turn from the third quarter when price increases __ which topped 15% that quarter __ did not dent demand.
PepsiCo, which makes MountainDew, said earlier in July that higher prices lifted the company’s revenue in the second quarter but consumer demand has faded. The company said that price increases could start to moderate in the second half of this year.
Meanwhile, a measure of consumer prices that is closely monitored by the Federal Reserve fell last month to its lowest level since March 2021, the latest sign that inflation in the United States is steadily cooling from its once-painful highs.
Cincinnati-based P&G reported net income of $3.39 billion, or $1.37 per share, in the quarter ended June 30. That compares with $3.06 billion, or $1.21 per share, in the year-ago quarter.
Sales rose 5% to $20.6 billion from $19.51 billion in the quarter.
During the fourth quarter the prices of fabric and home care and health care items went up 6% and grooming products rose 9%. Beauty items saw an 8% increase.
Analysts were expecting $1.32 per share on sales of $20.01 billion, according to FactSet.
During the fourth quarter the prices of fabric and home care and health care items went up 6% and grooming products rose 9%. Beauty items saw an 8% increase.
P&G expects fiscal year 2024 sales growth in the range of 3% to 4% versus the prior year. The company expects organic sales growth, which excludes deals and currency moves, to be in the range of 4% to 5%.
P&G expects net earnings per share growth in the range of 6% to 9% for the current year. This outlook equates to a range of $6.25 to $6.43 per share, with a mid-point estimate of $6.34, or an increase of 7.5%. Analysts were expecting $6.37 per share.
Shares rose nearly 3% in morning trading on Friday.
_____
Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio
