Procter & Gamble’s the report on the results for the fiscal quarter is due on October 19, 2021. The multinational company said $ 76.1 billion in net income for 2021, a 7% increase over the previous year. Organic revenue increased 6%, driven by a 3% increase in organic volume, excluding currency effects, acquisitions and disposals.

Due to a 4% increase in net income and a reduction in the number of shares outstanding, diluted net income per share for the quarter was $ 1.13, up 6% from EPS published the previous year. The increase in net income is largely due to higher net sales, which were offset by lower operating margins [1].

As clients prepare to return to the office and social events, P&G recorded the strongest growth in its beauty and health divisions. Organic sales increased 14% in the healthcare industry. Oral care items, such as Oral B toothbrushes, accounted for a large part of the increase. P & G’s beauty division recorded a 6% increase in organic sales. The company’s premium SK-II brand was in high demand. However, according to the company, the reduction in sales volumes in North America due to inventory difficulties offset some of the increases. [1].

The fabric and home care categories, including Dawn and Cascade dishwashing detergents, saw a 2% increase in organic sales. However, consumers are buying less cleaning products for their homes. Thus, the growth in this category has slowed down. A 6% organic sales increase was seen in the company’s grooming division, which includes Gillette and Venus. The only sector where sales of organic products fell was in baby, women and family care, which was down 1% from a year ago.

P&G Forecasts All-inclusive revenue growth of 2 to 4% in fiscal year 2022 compared to the previous fiscal year. All-inclusive sales growth is expected to be stable to slightly positive due to currency exchange rates. According to the company, organic revenue growth is expected to be in the order of 2-4%. [1].

P&G expects diluted net earnings per share to increase 6-9% in fiscal 2022, compared to $ 5.50 in fiscal 2021. Compared to fiscal 2021 base EPS of 5.66 $ growth in basic earnings per share for fiscal 2022 is expected to be in the range of three to 6 percent. Based on current company expectations, rising commodity and freight prices would result in headwinds of about $ 1.9 billion after tax, which will be offset by foreign exchange gains of about $ 100 million after. taxes.

The effect of commodities, freight and currencies on FY2022 EPS is approximately $ 0.70 per share, a 12% headwind on EPS growth [2].

PG actions analysis

After peaking on September 13 PG shares went down. The stock peaked at 147 then plunged into 137, the level he saw in July. However, it has recovered somewhat since then, and at the time of writing it is trading at 144.

On the daily chart, the price is above the 100-day MA and the MACD is pointing higher. This suggests an uptrend. The title’s next resistance is around 147, his previous record. If the price can break this barrier, it can move to the next resistance of 150. On the other hand, the title support is around 137. If the price exceeds this level, it may fall further towards the 132 level. [3]