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Procter & Gamble Reported Earnings that came in shy of Wall Street Expectations

The consumer goods major Procter & Gamble released mixed quarterly results on Friday due to increased commodity costs, and it issued a warning that it anticipates these challenges to continue into its fiscal year 2023. The Cincinnati-based manufacturer of Pampers, Pantene, and Tide products said that increased prices during its fiscal fourth quarter partially offset a decline in sales volume, which it blamed mostly to pandemic-related lockdowns in China and scaled-back operations in Russia. The company’s stock fell by nearly 6% in morning trade.

Procter & Gamble reported a net income of $3.05 billion, or $1.21 per share, for the three months that ended on June 30. It earned net income of $2.91 billion, or $1.13 per share, in the same time last year. In its health care and fabric and home care businesses, organic sales growth increased by 9% each, offsetting flat or declining volumes, respectively, by better pricing. Net sales increased by 3% from a year before.

Andre Schulten, chief financial officer of Procter & Gamble, stated during a conference call with the media that the company’s decreased business in Russia was the cause of the flat and negative volume. He expressed confidence in the “consumer’s holding up well” despite price increases. However, during the results conference call, management addressed retailer worries about price.

In order to combat inflation, Schulten claimed that Procter & Gamble conversations with Walmart “continue beneficial” and that the goals of the two firms “are matched.” He claimed that Procter & Gamble is still dedicated to upholding its policy of providing consumers with a range of pricing points, particularly for goods like diapers.

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