Procter & Gamble's revenue growth is driven by price hikes

Procter & Gamble Co. exceeded quarterly sales’ and earnings’ forecasts on Wednesday, Oct. 19. This is due to higher cost of goods, including prices on Head & Shoulders shampoos and Tide detergents. These measures eased the impact of rising raw material costs and a stronger dollar. 

Demand for consumer goods has declined at a slower pace than for discretionary products, particularly clothing and electronics. The reason is consumers preferring to purchase essentials. 

P&G CFO Andre Schulten said the company's share of the U.S. consumer goods market has remained steady. However, its volume is declining as consumers buy fewer storable items, increasing the frequency of their purchases. Fewer detergents are also being used, affecting corporate sales.

Procter & Gamble notes next year to be the starting point for a 1-3% cut in sales, despite last year's growth forecast of 2%.

The price of a P&G share equals to $1.57 with net sales of $20.61 billion. Refinitiv analysts evaluated the company using the IBES system. As reported, the corporation expects earnings of $1.54 per share on sales of $20.28 billion.