On Friday, P&G reported earnings that beat Wall Street expectations, despite concerns about a slowing economy and inflation. P&G Chairman and CEO Jon Moeller was not surprised by the results, as the company saw organic sales growth across all lines of business, fueled in part by price increases. Moeller stated that the company has not seen any signs of a potential recession, and that consumers are using products more carefully, such as using a half sheet of Bounty paper towel instead of a whole sheet. P&G’s stock rose 2% in premarket trading.
The company’s fiscal year outlook includes a 6% year-over-year organic revenue growth estimate and a 0% to 4% year-over-year core EPS growth estimate. The fabric care and home business segment saw a 21% year-over-year increase in operating profits, while the beauty business segment saw a 4% year-over-year decline in operating profits. The company also reported a 48.2% gross profit margin, up from 46.7% a year ago, and a $2.2 billion commodities inflation hit for the current fiscal year.