19 January Procter & Gamble has published a report for the second quarter of fiscal year 2022. The results were better than analysts' expectations, and stocks rose by the end of the day 3,4%, to 162 $.
Financial results
Reporting period P&G fell on October - December 2021. Compared to the same period in 2020:
- revenue — 21 billion dollars (+6%);
- profit — 4.2 billion dollars (+10%);
- earnings per share - 1,66 $ (+13%).
And here is how revenue has changed in each of the operating segments.
Beauty - shampoos like Head & Shoulders и Pantene, as well as hygiene products, for example Old Spice and Safeguard, - $3.9 billion (+3%).
Grooming - Braun razors, Gillette and Venus - $1.8 billion (+4%).
Health Care - Oral-B and Crest Toothbrushes, as well as various over-the-counter drugs and vitamins - $ 3 billion (+8%).
Fabric & Home Care - powders and household chemicals like Tide, Ariel and Mr. Clean - $7 billion (+7%).
Baby, Feminine & Family Care - diapers and women's products, e.g. Pampers and Always, - $5.1 billion (+5%).
Total revenue increased by 6%. Of them 3% contributed to sales growth, yet 3% - an increase in commodity prices. The cost of production increased by 15%, therefore P&G had to raise prices. But even so, the company's gross profit decreased from 53 to 49%. P&G stated, that will continue to raise prices, not to lose profit.
The company spent $5 billion on buybacks in the quarter., for dividends - $ 2 billion. Total in FY 2022 P&G plans to spend on buyback and dividends 10 and $8 billion.
Forecast
According to company forecasts, in fiscal 2022, total revenue will grow by 3-4%, earnings per share - by 6-9%. The company also raised its forecast for additional costs for raw materials and shipping from 2,3 up to $2.6 billion.
Dividends and shares
P&G declared a dividend in 0,87 $ per share, which will be paid after 15 February. Investors will receive dividends, who will hold shares on data on 21 January. Current dividend yield - 2,15%.
Including dividends in the last five years, stock returns P&G was slightly behind S&P 500: 112 against 118%. But starting from March 2021, the yield P&G almost twice as high: 33 against 17%.
