Procter & Gamble misses estimates on poor nappy sales
US consumer goods giant Procter & Gamble reported lower-than-expected quarterly sales today, hurt by a stronger dollar and a slowing demand for nappies.
The slowing growth rate globally has hit demand for its Pampers nappies, particularly in the US and China.
Net sales rose 4.6 per cent to $18.2bn (£13.9bn), slightly below the average analyst estimate of $18.3bn, according to Ibes data from Refinitiv.
Net earnings rose to $3.7bn, or $1.41 per share, in the second quarter ended 31 December, from $3.1bn, or $1.22 per share, a year earlier.
Shares fell 1.2 per cent to $124.
Jefferies analyst Kevin Grundy said Wall Street expectations were built on the company’s momentum in the past five quarters, but the modest second-quarter results are likely to be met with disappointment.
“Good quarter, but high bar,” he wrote in a note to clients.
Sales of P&G’s baby and feminine products rose just one per cent to $4.5bn, while sales of fabric and home care products rose four per cent to $5.7bn, both missing estimates.
Sales at the grooming business, which makes Gillette razors, rose two per cent to $1.6bn, also below estimates. The company took an $8bn charge last year related to the unit, which faces competition from smaller rivals Harry’s and Dollar Shave Club.