NEW YORK (AFP) – Consumer goods giant Procter & Gamble (P&G) painted a mixed picture in its earnings report on Tuesday, as price hikes supported revenue growth but customers appeared to pull back in some purchases.
The company behind Bounty paper towels, Gillette razors and Tide detergent saw its revenue rise three per cent from a year ago to USD21.4 billion in the quarter ending in December.
This was slightly lower than expected, and analysts are eyeing the performance of P&G and other consumer companies on whether they can keep prices up even as inflation cools.
P&G also reported that earnings per share had dropped 12 per cent to USD1.40, partially due to logging a USD1.3 billion charge on its Gillette business.
The company said last year it would book the charges as it adjusted the value of the razor brand, which it bought in 2005. Excluding that one-time hit, P&G’s net earnings per share jumped 16 per cent to USD1.84, beating expectations.
The increase was driven by a rise in net sales and increase in core operating margin, the company said.
But P&G’s product volumes were nearly flat overall for the quarter, suggesting that consumers may be pulling back as higher prices bite.
