- Procter & Gamble Co (NYSE:PG) reported first-quarter FY22 sales growth of 5% year-on-year, to $20.34 billion, beating the analyst consensus of $19.84 billion.
- Organic sales increased 4%, driven by a 2% increase in shipment volume, a 1% increase in pricing, and a favorable mix impact of 1%.
- Sales in the beauty segment rose 5%, the Grooming segment expanded 5%, and Health Care jumped 8%.
- Gross profit decreased 2% Y/Y to $9.97 billion. The reported gross margin decreased by 370 basis points to 49.0%.
- The operating margin contracted 260 basis points to 24.7%, while operating income for the quarter fell 5% to $5 billion.
- P&G generated an operating cash flow of $4.6 billion for Q1 and held $10.4 billion in cash and equivalents as of September 30, 2021.
- EPS of $1.61 beat the analyst consensus of $1.59.
- "We delivered solid results in our first quarter of fiscal 2022 in a challenging cost and operating environment," said CEO David Taylor.
- Outlook: P&G continues to expect FY22 all-in sales growth and organic sales growth of 2% - 4%.
- The company expects GAAP EPS growth of 6% - 9%. Core EPS growth of 3% - 6% from $5.66 in FY21, representing $5.83 - $6.00 versus the consensus of $5.94.
- The company said its current outlook estimates headwinds of $2.1 billion after-tax from higher commodity costs and an additional $200 million after-tax from higher freight costs.
- P&G expects to pay over $8 billion in dividends and repurchase $7 billion - $9 billion of common shares in FY22.
- Price action: PG shares are trading lower by 2.02% at $139.47 in premarket on the last check Tuesday.
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