P&G profit beats forecasts despite revenue shortfall
Procter & Gamble reported adjusted quarterly profit above Wall Street expectations, even as its revenue came in slightly below estimates due to weaker consumer spending in key product categories.
For the three months ending December 31, the consumer goods giant posted net sales of $22.21 billion, just under analysts’ forecast of $22.28 billion, according to LSEG data. Lower demand for core household products such as laundry detergent and toilet paper in the U.S. weighed on results, offsetting continued strength in the beauty segment, News.Az reports, citing Reuters.
Adjusted earnings per share reached $1.88, beating expectations of $1.86. The company maintained its annual sales and core earnings outlook, signaling confidence in navigating a challenging consumer environment.
P&G said lower-income households have reduced spending even on essential items, pressured by high prices, a cooling labor market, and geopolitical uncertainty. The company also noted that a recent U.S. government shutdown delayed food assistance payments, further hurting domestic sales across categories.
Overall sales volumes fell 1% in the quarter, with declines in three of P&G’s five business segments. Beauty remained an exception, recording 3% volume growth, driven by demand for hair and skincare brands such as Pantene and Olay. The beauty division now accounts for roughly 18% of total company sales.
Core gross margins declined for the fifth consecutive quarter, partly due to tariffs and investments in smaller product pack sizes designed to attract cost-conscious consumers. P&G has also implemented selective price increases to offset the impact of U.S. import tariffs.
However, the company lowered its annual net earnings-per-share growth forecast to 1%–6%, down from a prior range of 3%–9%, citing higher restructuring costs. As part of ongoing portfolio adjustments, P&G continues to exit underperforming businesses and plans to cut approximately 7,000 non-manufacturing roles over the next two years.
New CEO Shailesh Jejurikar said the company remains on track to deliver within its annual targets despite persistent consumer and geopolitical headwinds.
By Aysel Mammadzada
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