P&G Returns to Volume Growth in Q3 Earnings Beat

Procter & Gamble reported a strong fiscal third quarter, with net income rising to $3.93 billion, or $1.63 per share, compared to $3.78 billion, or $1.54 per share, in the prior year. Net sales climbed 7% to reach $21.24 billion, while organic sales, which exclude the impact of acquisitions, divestitures, and currency fluctuations, grew by 3%. The most critical metric for investors was the 2% increase in volume, marking the first time in a year that the company has reported growing volume across its portfolio. This shift suggests a potential stabilization in consumer demand after a prolonged period where shoppers reduced consumption to offset inflationary pressures. Performance varied by segment, with the beauty division—including Olay and Pantene—leading the way with 5% volume growth. The baby, feminine, and family care segment saw a 3% increase, while fabric and home care rose 2%, supported by strong North American demand for Tide. Conversely, the grooming and health care segments both experienced a 2% decline in volume. Following the report, P&G shares rose 4% in premarket trading. The company reiterated its full-year outlook, projecting sales growth between 1% and 5% and net earnings per share growth in the range of 1% to 6%. CEO Shailesh Jejurikar stated that the company is increasing investments to accelerate consumer momentum despite a challenging geopolitical and economic environment.