American firm Procter & Gamble's Q1 earnings dip despite sales growth
October 21, 2021 - United States Of America
The Procter & Gamble Company (P&G), an American consumer goods corporation, has reported a 5 per cent rise in its sales to $20.3 billion during the first quarter (Q1) of FY22 ended on September 30, 2021, compared to the sales of $19.3 million in the same period of last fiscal. However, net earnings for the quarter fell 4 per cent to $4.1 billion ($4.3 billion).
“We delivered solid results in our first quarter of fiscal 2022 in a challenging cost and operating environment,” David Taylor, chairman, president and chief executive officer at P&G, said in a press release. “These results keep us on track to deliver our top-line, bottom-line and cash targets for the fiscal year.”
Fabric and home care segment sales grew five per cent to $7.0 billion against Q1 FY21, while baby, feminine and family care segment organic sales increased two per cent amounting to $4.8 billion.
The company’s gross profit for the quarter slipped two per cent to $9.9 billion ($10.2 billion). Operating income dropped by five per cent to $5.0 billion ($5.3 billion).
“We remain focused on executing our strategies of superiority, productivity, constructive disruption and continually improving P&G’s organisation structure and culture. These strategies enabled us to build strong momentum before the COVID crisis and accelerate progress as we navigate through the crisis, and they remain the right strategies to deliver balanced growth and value creation,” Taylor concluded.
In its outlook for FY22, P&G said that it continues to expect all-in sales growth in the range of two to four per cent against the prior fiscal.