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The
company's shares rose about 1.5% in premarket trading.
The results, like those from Unilever and Nestle, indicate how
major global consumer product and food makers have managed to
raise prices enough to offset recent increases in
transportation, commodity and labor costs.
Investors are currently raising concerns about when and if the
recent price hikes will start to turn shoppers off companies'
brand name products. Many consumers around the world face
relatively high costs of living, including rising interest rates
that affect households budgets.
P&G's overall volumes fell 1% in the fourth quarter and the
company flagged lower volumes, primarily in Greater China.
Average prices across its product categories increased 7%.
In comparison, the company had hiked prices by 10% in the third
quarter, and its sales volume fell 3%.
P&G forecast fiscal 2024 profit per share growth in the range of
6% to 9%, equating between $6.25 and $6.43 per share with a
mid-point of $6.34, compared to analysts' estimates of $6.38.
Rival Kimberly-Clark Corp had on Tuesday raised its annual sales
and profit forecasts. The maker of Kleenex tissues and
KleenGuard said it increased product prices 8% in its second
fiscal quarter, while sales volumes fell 3%.
P&G said it expects a net benefit of around $400 million
after-tax from favorable commodity costs in fiscal 2024 net of
currency fluctuations.
The Tide detergent maker's fourth-quarter net sales rose to
$20.55 billion from $19.52 billion, a year earlier.
Analysts on average had expected $19.98 billion, according to
IBES data from Refinitiv.
On an adjusted basis, the company earned $1.37 per share,
beating estimates of $1.32.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Kailyn Rhone
in New York; Editing by Sriraj Kalluvila)
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