Procter & Gamble Reports Soft Revenue Growth in Q1 2024

Concerning Signs Emerge as P&G Falls Behind Industry Average

Published / Modified Apr 20 2024
Goran Soko / CSIMarket.com

Procter & Gamble (P&G) has recently reported its financial results for the January to March 2024 period, and while there are some positive numbers, there are also concerning signs that investors should pay attention to.

Firstly, P&G's revenue for the quarter increased by a modest 0.633% to $20.20 billion.
While this may seem like a positive growth, it is important to note that the company's top-line increase was lower than the industry average of 1.33% realized by nearly all other players in the Chemical Manufacturing industry.
In fact, P&G's revenue also decreased by -5.811% from the previous period, which is a significant decline.
This suggests that P&G is not performing as well as its competitors.

Additionally, P&G's earnings per share grew by 10.95% to $1.52 year on year.
While this may seem like a positive growth, it is important to note that the earnings per share growth is lower than the industry average.
In the same period, P&G's net income increased by 10.43% to $3,781.000 million.
Again, while this may seem like a positive growth, it is lower than what other companies in the industry have reported.

Furthermore, P&G's stockpiles have increased to $7,117.0 million due to the seasonal nature of the company's business.
However, this is still below the previous year's level of $7,590.0 million.
Additionally, P&G's operating earnings improved by just 4.99% to $4,460 million, which is again lower than what other players in the industry have achieved.

Another concerning signal is the increase in accounts receivable, which suggests rising demand.
P&G's accounts receivables were valued at $6,215.0 million, which is higher than the preceding quarter.
While this may indicate increased demand, it also raises questions about P&G's ability to effectively manage its cash flow.

In terms of stock performance, P&G shares have declined by -2.05% during the month of April.
This brings the share price to -2.05% during the second quarter of 2024.
While P&G stock is currently gaining momentum, it is still 3.6% below its 52-week high of $163.14.
This suggests that there may be limited upside potential for the stock in the near term.

Overall, while P&G has reported some positive numbers, such as moderate revenue and earnings per share growth, there are concerning signs that investors should be cautious about.
P&G's performance is lagging behind industry averages, particularly in terms of revenue and earnings per share growth.
Additionally, the increase in accounts receivable and the lower-than-expected stockpile levels raise questions about the company's ability to effectively manage its operations.
Investors should carefully assess these factors before making any investment decisions in P&G.

Procter And Gamble Co's Inventory Turnover Ratio

Procter And Gamble Co's Price to sales ratio PS


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