11:29 AM EDT, 07/30/2024 (MT Newswires) -- Procter & Gamble's ( PG ) earnings rose year over year during the fiscal fourth quarter while revenue fell as pricing and volume gains were offset by foreign-currency headwinds.

Adjusted earnings rose to $1.40 per share for the June quarter from last year's $1.37, which was the consensus compiled by Capital IQ for the most recent quarter. Sales slipped to $20.53 billion from $20.55 billion, versus the Street's view for $20.74 billion.

The consumer goods company's shares fell 6% in Tuesday trading.

The maker of Crest toothpaste and Pampers diapers reported overall gains of 1% each in pricing and volume, offset by foreign exchange headwinds of 2%. Sales in the beauty segment fell 1% year over year to $3.72 billion, while grooming and fabric and home care remained flat at $1.66 billion and $7.27 billion, respectively. Healthcare sales rose 3% to $2.67 billion, while the baby, feminine and family care division decreased 3%.

Gross margin rose by 120 basis points due to higher prices, lower commodity costs and productivity savings. Selling, general and administrative expenses increased to $6.3 billion from $5.78 billion in the prior-year quarter.

"There's still more work to do to continue improving areas in our control, which will be needed to offset the headwinds that are largely not in our control," Chief Executive Officer Jon Moeller said during an earnings call, according to a Capital IQ transcript. "We'll double down on productivity, up and down the (profit and loss) and across balance sheet."

Procter & Gamble ( PG ) expects adjusted EPS to be in a range of $6.91 to $7.05 for fiscal 2025, reflecting annual growth of 5% to 7%. The company estimates a $500 million net headwind from commodity costs and foreign exchange, which will drag down adjusted EPS by $0.20 in the year. The Street is currently looking for $6.97 in normalized EPS.

Revenue is projected to rise by 2% to 4% for the ongoing fiscal year, including a foreign-exchange headwind of one percentage point. Organic sales growth is expected between 3% to 5% versus 4% in fiscal 2024. The market's view is for revenue of $86.91 billion.

"We continue to expect the environment around us to remain volatile and challenging from input costs, currencies, to consumer competitors, retailers and geopolitical dynamics," Chief Financial Officer Andre Schulten said on the call.

The company anticipates a non-cash charge of about $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30. This comes after the group substantially liquidated its operations in certain enterprise markets, including Nigeria, as of June 30, 2024, and completed the divestiture of its Argentinian business at the beginning of July.

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