Yahoo Finance P&G CEO after strong earnings: Consumers 'more careful' with purchased products
'We are not' seeing any signs of recession, the CEO added.
P&G's (PG) earnings on Friday surprised a few on Wall Street looking for softness at the hands of a slowing economy and sticky inflation.
The better-than-expected results didn't surprise P&G's top C-suite exec, however.
"No," P&G chairman and CEO Jon Moeller told Yahoo Finance when asked if the resilience of the Tide maker's quarter came as a shock.
P&G saw organic sales growth across all lines of business, in part fueled by price increases. But the volume of products sold generally held steady across the board, save for a 5% drop in the fabric care and home business.
Asked if he is seeing any signs of a potential recession, Moeller answered: "We are not."
"We're seeing if anything, more careful usage of the product that they have bought," he added. "So they might use a half a sheet of Bounty paper towel as opposed to a whole sheet."
P&G shares popped 2% in premarket trading.
The Earnings Rundown
Net Sales: +4% year over year to $20.1 billion vs. $19.33 billion estimate
Organic Revenue Growth: +7% year over year vs. +5.1% estimate
Diluted EPS: +3% year over year to $1.37 vs. $1.32 estimate
Fiscal Year Outlook
Organic Revenue Growth: +6% year over year vs. +6% estimate (prior: +4% to +5%)
Core EPS Growth: +0% to +4% year over year vs. +0.5% estimate (reiteration)
What Else Caught Our Attention
21% year-over-year increase in the fabric care and home business segment's operating profits, the fastest growth out of all P&G's businesses.
4% year-over-year decline in the beauty business segment's operating profits, the worst growth out of all P&G's businesses.
48.2% gross profit margin, up from 46.7% a year ago.
$2.2 billion commodities inflation hit for P&G's current fiscal year.
$7.4 billion in stock repurchases for the nine months ended March 31.
From the C-Suite
"So we're not seeing a lot of trade down [among consumers]. We're seeing if anything, more careful usage of the product that they have bought. So they might use a half a sheet of Bounty paper towel as opposed to a whole sheet. But generally again, just looking at the numbers, the consumer is holding up extremely well." — P&G chairman and CEO Jon Moeller
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations or anything else? Email brian.sozzi@yahoofinance.com
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