uploads///PG Sales

What to Expect for Procter & Gamble’s Sales in Fiscal 2Q18

By

Jan. 16 2018, Updated 1:05 p.m. ET

Analyst expectations

Procter & Gamble (PG) has disappointed investors with its sales over the past several quarters. Its top line fell since planned product divestitures, decelerating category growth rate in North America, and heightened competition in the United States (SPY) in the shave care segment remained a drag.

The company’s sales improved during the last reported quarter due to increased shipment volumes. However, lower pricing restricted its sales growth rate. As for its upcoming fiscal 2Q18 results, analysts project the top line to be $17.4 billion, a 3% rise on a YoY (year-over-year) basis.

In comparison, analysts expect sales for Kimberly-Clark (KMB), Clorox (CLX), Colgate-Palmolive (CL), and Church & Dwight (CHD) to see YoY growth in the coming quarters, thanks to favorable currency rates and new product launches.

Article continues below advertisement

Outlook

Procter & Gamble’s management remains upbeat and expects new product launches to drive sales in fiscal 2018. The company’s innovation-led premium products are witnessing strong growth, especially premium Olay and SK-II products, which showed strength in China (FXI). The company projects a 3% improvement in sales. Organic sales are expected to rise 2%–3%.

However, the soft category growth rate in developed economies and increased competition in the United States from Dollar Shave Club and Harry’s Razor in the male grooming category is expected to hurt the sales of its razors and blades. The company is investing in price to gain market share in the shave care category. However, lower pricing is affecting its top-line growth rate as well as its margins.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.