Consumer Staples

Procter & Gamble’s F3Q sales took a hit from certain international markets. CFO Andre Schulten on an investor call says volume trends of the European enterprise and Asia-Pacific/Middle East/Africa countries such as Egypt, Saudi Arabia, Turkey, Indonesia and Malaysia have remained soft since the start of heightened tensions in the Middle East. Shipments in Russia also continued to decline given its reduced footprint and curtailed investments with consumers and retailers, he adds. Schulten says the combined headwinds from greater China and Asia/Middle East/Africa markets had a 150 basis point impact on total sales in the quarter, but adds that the company expects headwinds to moderate or annualize over the coming periods.

Procter & Gamble will most likely not benefit from an improvement in China and its personal health care category in its upcoming results, set to be the second consecutive quarter in which the consumer goods giant’s organic sales growth could be a bit softer than expected, Barclays analysts say in a research note. Still, Procter & Gamble continues to show significant volume growth and market share gains across most of its focus markets, including the U.S. and Western Europe, the analysts add. Barclays lowers its 3Q organic sales growth estimate by 60 basis points to 3%, but raises its recommendation on the stock to $168 from $165 previously. Shares fall 0.4% to $155.22.

P&G Declares Dividend Increase April 09, 2024– The Board of Directors of The Procter & Gamble Company (NYSE:PG) declared an increased quarterly dividend of $1.0065 per share on the Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company, payable on or after May 15, 2024 to Common Stock shareowners of record at the close of business on April 19, 2024, and to Series A and Series B ESOP Convertible Class A Preferred Stock shareowners of record at the start of business on April 19, 2024. This represents a seven percent increase compared to the prior quarterly dividend. This reinforces our commitment to return cash to shareowners, many of whom rely on the steady, reliable income earned with their investment in P&G. It marks the 68(th) consecutive year that P&G has increased its dividend and the 134(th) consecutive year that P&G

Procter & Gamble (PG) is expected to report soft fiscal Q3 organic sales growth of 3.4%, below the 3.8% consensus forecast due to China beauty category weakness and Middle East pressure, Morgan Stanley said in a note. The brokerage said, in a Sunday note, it expects a 2.4% earnings per share upside for the consumer goods producer, driven by a 116 basis points gross margin improvement. EPS for the quarter is expected to reach $1.44, surpassing the consensus estimate of $1.41. EPS for the full year is forecasted at $6.45, Morgan Stanley added. The brokerage expects mixed segment results for the company, with a downside in Beauty operating segment growth at 0.8%, a 2% growth in Healthcare, and a growth of 5% each in the Grooming and Baby/Family care categories. Regionally, the brokerage forecasts a 4% growth in North America and a 14% increase in Latin America, countered by a

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target price by $6 to $175, 26.3x our next-12-month EPS of $6.67 vs. consensus’ $6.72. Our FY 2024 and FY 2025 EPS estimates are unchanged. The multiple is a premium to the five-year forward P/E average of 24x, which we think is warranted by wage trends running above inflation rates. We anticipate this dynamic to impede meaningful demand destruction as we see relatively safe staple demand compared to more discretionary items. We think PG’s margin performance, notably above its pre-pandemic levels, should provide levers to offset any turbulence if it develops. Our view reflects better volume performance in the coming two quarters, relative to the next two, and we see top-line performance surprising to the upside, which we think will lift margin performance.