P&G CEO Jon Moeller says he doesn’t see a recession looming on the horizon despite numerous consumer headwinds, and will continue to push through price increases to help offset inflationary pressures.
The consumer products giant’s latest earnings underscore Moeller’s no recession call.
On Wednesday, P&G (PG) reported volume gains in four out of its five business lines for its third fiscal quarter. Volume increases were led by an 8% increase in the company’s health care segment. Sales rose faster than volume in all segments, reflecting P&G’s recent price increases and consumers not balking too much at the hikes as suggested by Moeller.
Here is how P&G performed compared to Wall Street estimates for its fiscal quarter:
Net Sales: 19.4 billion vs. $18.73 billion
Organic Revenue Growth: +10% vs. +6.24%
Diluted EPS: $1.33 vs. $1.29
Fiscal Year Outlook
Shares of P&G are up slightly Wednesday morning following the results.
The Dow Jones Industrial Average component’s stock has fallen 3.4% over the past year, slightly outperforming the Dow’s 4.2% decline.
P&G did lift its outlook for inflation again, something investors need to keep in mind.
The company sees a $3.2 billion after tax headwind to profits in its current fiscal year due to higher prices for commodities and freight, and currency fluctuations.