Procter & Gamble kicked off beauty’s latest earnings season with a mixed bag.
Net earnings per share were $1.84 in the second quarter of its fiscal year 2024, an increase of 16 percent compared with a year earlier and beating Wall Street predictions for $1.70.
But net sales came in at $21.44 billion, up 3 percent versus the prior year. Analysts had been expecting $21.48 billion.
Organic sales, excluding the impacts of foreign exchange and acquisitions and divestitures, increased 4 percent.
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Within that, beauty segment organic sales increased one percent. Skin and personal care declined mid-single digits as volume declines and unfavorable mix due to lower sales of SK-II were partially offset by higher pricing. Hair care increased high single digits driven by increased pricing, premium product mix and volume growth, primarily in North America.
Grooming segment organic sales increased nine percent versus year ago driven by higher pricing, premium product mix and volume growth.
P&G raised its fiscal 2024 core net earnings per share growth from a range of six to nine percent to a range of eight to nine percent versus fiscal 2023 EPS. This outlook equates to a range of $6.37 to $6.43 per share.
It maintained its guidance range for sales growth to be in the range of two to four percent.
“We delivered strong results in the second quarter, enabling us to raise our core EPS growth guidance and maintain our top-line outlook for the fiscal year,” said Jon Moeller, chairman of the board, president and chief executive officer.
