How did P & G beat earnings expectations in the second quarter?

Procter & Gamble's net sales in the second quarter reached $21.88 billion, a 2.1% increase from the same period last year and above market expectations of $21.54 billion. Earnings per share reached $1.88, also slightly higher than expectations of $1.86. Sales in the North American market increased by 4%, with the core driving force being the launch of new products such as Olay Melts makeup remover pads and Luvs diapers. Demand for consumer goods is stable, especially in the U.S. market, which has made a significant contribution to the demand for dishwashing essence and toilet paper.

Why are P & G's sales increasing but prices remaining stable?

During the second quarter, P & G's overall sales increased by 2%, but average product prices remained stable. This is different from the strategy of relying on price increases in the past two years to boost sales. Andre Schulten, the company's chief financial officer, pointed out that the current U.S. consumer market is stable, and P & G has chosen to focus on product innovation to attract consumers to return. Such a strategy not only avoids a decline in demand caused by rising prices, but also provides growth momentum for the future.

Has the performance of China market improved?

The China market remains one of P & G's challenges. Although sales in China fell by 3% in the second quarter, they have improved from the 15% and 9% declines in the previous two quarters. In addition, sales of Japanese beauty brand SK-II in China increased by 5%, ending multiple consecutive seasons of decline. Despite this, CEO Jon Moeller stressed that confidence among China consumers is still insufficient and overall demand will still take time to recover.

What is the driving force for P & G's future growth?

P & G will rely on innovative products to drive sales in the future, including low-cost Oral-B electric toothbrush, Crest whitening toothpaste and Zevo insect spray. In addition, the company also mentioned that it may implement a "moderate price increase" strategy in the future to cope with rising costs. Market experts predict that this strategy of balancing prices and sales may bring more stable growth momentum to the company in the next few quarters.