P&G misses revenue estimates due to slower US growth

Procter & Gamble's second-quarter revenue fell slightly short of Wall Street expectations on Thursday, as weak spending by US consumers and the hit from a government shutdown offset stronger growth globally, reports Reuters.
Adjusted earnings topped targets, helped by strong demand for P&G's pricey haircare and beauty products, in a mixed performance for the bellwether US consumer goods maker, whose results are seen as an indicator of the industry's health.
A government shutdown in the US - P&G's biggest market - delayed payments for food assistance in October and November and hurt lower-income households that were already struggling to make ends meet amid high prices and a tepid labor market.
P&G finance chief Andre Schulten said in early December that sales were down across categories in the US due to the shutdown.
Sales volumes dropped in three of the company's five reported categories, and rose only for the beauty business, which has been an outlier over the past year as consumers continue to buy self-care products.
Total volumes were well below the typical growth rate of about 3% to 4% across categories in the US, Schulten said.
"The consumer is making choices driven by cost when it comes to items like laundry detergent or bleach, but they are not so desperate that they will revert to a generic alternative for the things that make them look and feel better," said Brian Mulberry, senior client portfolio manager at Zacks Investment Management.
For the three months ended December 31, P&G's net sales rose about 1% to $22.21 billion, according to data compiled by LSEG.