Although Procter & Gamble (PG Stock) posted earnings and sales for the company’s fiscal first quarter that were higher than analysts’ expectations, the consumer goods major issued a warning that the company’s profitability for the fiscal year would be at the lower end of the company’s prediction. P&G laid the blame on the increased cost of living and a stronger currency.
The price of PG stock went up 2.4%
The corporation reported earnings for the period of $1.57 per share on sales that came in at $20.6 billion, representing a 1% rise over the previous year’s numbers. The period saw a 7% gain in organic sales, which was driven by a 9% increase in revenue generated from increased pricing and a 1% increase generated by favourable product mix. During the third quarter, there was a fall of 3% in the volume of shipments.
Gross profit is now at 47.4%, down from 49% before.
Procter & Gamble (NYSE:PG), the company that manufactures products such as Tide laundry detergent, Pampers diapers, and Crest toothpaste, was anticipated by analysts polled by FactSet to announce earnings of $1.54 per share on revenues of $20.28 billion for the company’s fiscal first quarter. When the previous year’s numbers were tallied, the corporation reported a profit of $1.61 per share on revenue of $20.34 billion.
Procter & Gamble (NYSE:PG) has stated that it anticipates a decrease in sales of between 1% and 3% for the fiscal year 2023, in contrast to its previous projections of flat to 2% growth. Foreign exchange, the business said in a statement, “is now forecast to represent a six-percentage point headwind to all-in sales growth for the fiscal year.”
According to P&G, the company would face challenges in the form of headwinds in the amount of $1.3 billion “as a result of unfavorable foreign currency rates,” $2.4 billion “as a result of increased commodity and materials prices,” and $200 million “as a result of higher freight expenses.”
Shipment volumes fell 3%. The gross profit for the third quarter came in at 47.4%, down from 49% in the previous quarter.
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Author Valerie Remorosa 
