Procter & Gamble Co.’s stock rose 1.2% premarket Tuesday, after the consumer goods giant beat profit estimates for its fiscal second quarter as it again raised prices and boosted margins.
The Cincinnati-based parent to Charmin and Bounty toilet paper, Febreze and Downy detergent, Gillette shaving products and Pantene shampoo
PG,
posted net income of $3.468 billon, or $1.40 a share, for the quarter to Dec. 31, down from $3.933 billion, or $1.59 a share, in the year-earlier period.
Adjusted per-share earnings came to $1.84, well ahead of the $1.70 FactSet consensus.
Sales rose 3% to $21.441 billion from $20.733 billion year ago, just below the FactSet consensus of $21.476 billion.
By segment, sales rose 6% at the company’s grooming business as it raised prices by an average of 7% and volume rose 1%. Sales at the beauty business rose 1% after P&G raised prices by an average of 4%, while volumes were flat.
Sales at the healthcare division were up 4%, after an average price increase of 5%, as volumes fell 3%. Sales at fabric & home care rose 5% after prices were hiked an average of 4%. Volumes were flat.
Sales at the baby, feminine & family care segment rose 2% after a 4% hike in prices, while volumes fell 2%.
Gross margin rose 520 basis points for the quarter, driven by benefits from productivity savings, favorable commodity costs and increased pricing.
 Inflation, as measured by the annual headline rate of the consumer-price index, has come down from peaks seen last year, although it has remained stuck at or above 3% for seven straight months.
P&G tweaked its fiscal 2024 profit guidance, but stuck with its sales outlook. It now expects EPS to be down 1% to flat, compared with prior guidance of up 6% to 9%, but expects adjusted EPS to rise 8% to 9%, narrowing the range from prior guidance of up 6% to 9%.
Sales are still expected to rise 2% to 4% from fiscal 2023.
P&G expects to book restructuring charges of $1.0 billion to$1.5 billion related to a market portfolio restructuring of operations, mostly in enterprise markets, including Argentina and Nigeria. Most of the charges will be noncash and recognized in the fiscal years ending June 30, 2024 and 2025.
In the second quarter, it booked a $1.3 billion pretax noncash impairment charge related to intangible assets acquired as part of the 2005 acquisition of the Gillette Co.
For more, read: Procter & Gamble sees more than $2 billion in charges for restructuring and Gillette impairment
The stock has gained 4.8% in the year to date, while the S&P 500
SPX,
has gained 20.7%.
This story originally appeared on Marketwatch
