Procter & Gamble Q1 Sales Miss Expectations

Procter & Gamble Co reported a slight decline in first-quarter sales to $21.74 billion, missing analyst expectations of $21.91 billion, due to lower demand in key segments like Beauty and Baby care, and competition on pricing in major markets like the U.S. and China. Organic sales increased by 2%, driven by a 1% rise in prices and volume, but overall sales were negatively impacted by weak market conditions and a challenging competitive landscape. Despite these challenges, P&G's adjusted earnings per share exceeded expectations at $1.93 versus $1.90 forecasted, with operating income increasing by 1% to $5.80 billion. The company maintained its fiscal year guidance, emphasizing its commitment to a growth strategy focused on product performance and customer value. Concerns remain about P&G's ability to attract lower-income consumers who are increasingly opting for private-label alternatives, potentially impacting its market share. The company's financial health remains robust with $12.16 billion in cash and equivalents, and it returned $4.4 billion to shareholders through dividends and share repurchases.