P&G CFO: Consumers are dosing their products carefully

A financially stretched US user continues to powerfulness mixed net results astatine P&G.

Proctor & Gamble (PG) shares fell 1.5% successful pre-market trading connected Thursday arsenic the company's 2nd fiscal 4th income missed estimates successful the grooming, cloth care, and babe categories arsenic consumers traded down to cheaper backstage statement options.

P&G did bushed net estimates and support its afloat twelvemonth outlook.

"We are seeing income maturation successful our categories successful the US and Europe, albeit astatine a slower pace," Proctor & Gamble CFO Andre Schulten told Yahoo Finance.

"The user is choosing to beryllium a small spot much diligent successful presumption of utilizing pantry inventory, possibly dosing the merchandise a small spot much carefully, possibly making choices successful presumption of however often they use. None of this is untypical. None of this volition sustain. So we firmly judge the class implicit clip volition instrumentality to 3 to 4% growth," Schulten said.

The Street has braced for softer results from P&G, with the banal down astir 6% successful the past six months.

"The K-shaped system powers trade-down successful basics but trade-up wrong the much discretionary Beauty sub-sector," said Evercore expert Robert Ottenstein connected the headwinds user products companies are presently experiencing.

• Net sales: $22.2 billion, +1% from the anterior twelvemonth vs. $22.32 cardinal estimate

• Organic income growth: Unchanged vs. +0.54% estimate

  • Beauty conception integrated gross growth: +4% vs. +2.87% estimate

  • Grooming conception integrated gross growth: 0% vs. +2.42% estimate

  • Healthcare conception integrated gross growth: +3% vs. +1.73% estimate

  • Fabric and location attraction conception integrated gross growth: 0% vs. +1.2% estimate

  • Baby, feminine, and household attraction conception integrated gross growth: -4% vs. -3.2% estimate

• Gross margin: 51.2% vs. 52.2% estimate

• Adjusted EPS: $1.88, unchanged from the anterior twelvemonth vs. $1.86 estimate

• Full-year integrated income growth: Reiterated (previous: 0% to +4%; estimate: +1.7%)

• Full-year net per share: Reiterated (previous: $6.83 to $7.09; estimate: $6.97)