(AOF) – Procter & Gamble, which owns Ariel detergents and Head & Shoulders shampoos, among others, announced better-than-expected earnings and sales for the July-September quarter, the first of its staggered fiscal year. P&G posted quarterly adjusted earnings per share of $1.57 (-2%) on net revenue of $20.61 billion, while analysts had expected earnings of $1.54 per share for a figure business of $20.28 billion.
Revenues showed organic growth of 7%. The group was driven by the rise in the prices of its products. P&G said average prices across its product lines rose 9% in the quarter ended Sept. 30, while sales volumes fell 3%.
The American consumer goods specialist, which generates more than half of its sales outside the United States, reported that the strengthening of the dollar would impact its annual sales by 6 percentage points, once morest a previous forecast of 3 percentage points.
The group expects its fiscal 2023 sales to decline 1% to 3%, compared to growth of 0% to 2% previously, and that its annual profit will be in the low range of its forecast. from 0% to 4% growth.
Its organic growth target of 3% to 5% was however maintained.
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The French beauty and hygiene market continues to decline
In recent years, the French have simplified their beauty routines, which has resulted in lower spending. According to Kantar, the weight of personal care and beauty in spending on consumer products has steadily decreased over the past five years, dropping below 10%. Thus in 2021, health and beauty expenditure accounted for 8.5%. For the NielsenIQ panelist, the development of telework penalizes the sector because teleworkers reduce their health and beauty purchases twice as quickly as the average French person. This trend is likely to continue in 2022. To this is added another negative factor: with inflation and the loss of purchasing power, the French will certainly carry out arbitrations in their spending, which might be at the expense of the hygiene-beauty.
