Protecter & Gamble (PG.US) shares are rising more than 4% after the company released its financial report.
Procter & Gamble, the world's largest producer of household goods, has increased prices for its consumer products faster than its own expenses, resulting in a boost in profit margins for the first time in two years. Also due to higher prices and a slightly higher demand for some products, the company raised its sales projection for the fiscal year ending in June. According to the company officials now organic sales are expected to grow about 6% on an annual basis versus 5% previously assumed.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSome key information from PG.US financial statement:
- P&G did not change its profit outlook despite easing costs and reiterated its expectation that earnings per share will be at the lower end of a $5.81 to $6.04 range.
- Total unit sales fell 3% in the quarter ended in March, less than what analysts expected and smaller than the one P&G posted the previous quarter.
- The rebounding consumption in China following its reopening from strict Covid-19 lockdowns helped limit the unit sales decline.
- P&G expects its volume declines to continue in the current quarter, and there is no broad-based relief in terms of input costs.
- Organic sales in the quarter rose 7%, powered mostly by a 10% jump in prices that helped offset a decline in unit sales.
- Europe drove the volume declines in businesses such as fabric- and baby-care.
- Higher prices and savings from improved efficiency helped the company expand its gross margins in the quarter.
PG.US shares are currently trading at $156 after a strong rise at the beginning of the session and coming closer to the all-time high at $165, reached at the end of 2021. The price was rejected from the uptrend resistance line near $158, and is currently declining. The price is currently trading above both the 50 and 200 SMA indicators, which further supports the bullish momentum. Traders may want to monitor the price closely to determine if it will continue to decline or break above the resistance line to resume the uptrend. Support levels to watch out for are around $152 and $146.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
