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P&G shares jump as it forecasts profit growth / Photo: JOE RAEDLE - GETTY IMAGES NORTH AMERICA/AFP/File
P&G shares jump as it forecasts profit growth
Procter & Gamble reported another quarter of solid profit growth behind price hikes on Friday as shares rallied on an earnings forecast that topped analyst expectations.
The company behind Bounty paper towels, Gillette razors and Tide detergent scored higher net sales across its five divisions in the fourth quarter of fiscal 2023. Revenues rose five percent to $20.6 billion.
However, overall volumes declined one percent while prices rose seven percent.
Quarterly profits came in at $3.4 billion, up 11 percent from the year-ago period.
P&G expects 2024 profits growth of between six and nine percent, with a midpoint of $6.34 per share, well above analyst expectations.
Chief Financial Officer Andre Schulten declined to detail specific planned pricing actions but signaled that the company expects a moderation in approach after several hikes over the last 18 months.
"We assume pricing will still be there, but at a more moderate level," Schulten said.
The company expects overall revenue growth of about four percent in fiscal 2024, with higher volumes and price each contributing about one to 1.5 percent coming from price hikes.
Price increases are "inherent in our business model because we are innovating and we are attempting to grow the market," he said.
Shares of P&G jumped 3.0 percent near midday to $156.71.
L.Klein--BlnAP
