P&G (PG): Consumer Still Buys The Cheap Stuff

Procter & Gamble (PG) posted an increase in net of 9%, beating estimates. As the firm’s CFO said because the firm sells consumer goods at all price levels, it can get people who have to trade down on costs.

Net sales increased nine percent to $22.0 billion for the quarter driven by double-digit growth in developing regions.

Diluted net earnings per share increased 12 percent to $1.03 for the quarter. Net earnings were up nine percent to $3.3 billion due to sales growth and higher non-operating gains.

High commodities hurt margins.  They dropped by 240 basis points to 50.5%.

The company’s baby car operations did remarkably well.

Go figure.

Douglas A. McIntyre