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.
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Open account Try 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.
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