Procter & Gamble (NYSE: PG) reported better-than-expected first quarter results on Wednesday as its rising prices helped the company offset a decline in sales volume and the current economic turmoil. The stock was up 2% during early morning trading amid the news.
The multinational consumer goods corporation reported earnings of USD1.57 per share, compared to the expected USD1.54 a share. Revenue amounted to USD20.61 Billion, higher than analysts anticipated USD20.28 Billion.
“We delivered solid results in our first quarter of fiscal 2023 in a very difficult cost and operating environment,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. “These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds. We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organization structure. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to navigate through the near-term challenges we’re facing and continue to deliver balanced growth and value creation.”
Procter & Gamble has increased prices on its items to balance out rising costs, but the move has pressured consumer demand, with volume falling for the last two quarters. Nevertheless, executives stand by the strategy, stating that it hadn’t caused any major changes in consumer behavior.
“We feel very good about the consumer reaction to our price increases because we don’t see any major trade downs,” Andre Schulten, the company’s chief financial officer, said on a call with reporters.