Procter & Gamble grows organic sales 4 percent in its first quarter and keeps its core EPS range of $6.89 to $7.11
Procter & Gamble sold $23.3bn of goods in the three months to September, 4 percent more than a year earlier, according to fiscal first-quarter results the Cincinnati company filed with the SEC on Thursday. Organic sales, which strip out currency and deals, also rose 4 percent. Volume supplied 2 points of that.
Profit barely moved. Core earnings came to $2.00 a share against $1.99, and diluted earnings to $1.97 against $1.95. Core gross margin narrowed by 150 basis points, with higher commodity costs and spending on products each taking 140 basis points and productivity savings returning 120.
All five segments grew organically, between 3 and 5 percent.
The fiscal 2027 range for core earnings stays at growth of zero to 3 percent, which the company puts at $6.89 to $7.11 a share. Sales guidance now runs to growth of 2 to 4 percent, because the range includes Thorne, a business P&G acquired on 1 October. P&G now expects about $1.4bn of after-tax commodity costs this year, and together with interest, other income and currency it puts the drag at 79 cents a share.
