Record sales for Galderma while inflation hits P&G and Kering sees lower luxury revenue

26 Apr 2024 --- The earnings bonanza continues with Procter & Gamble (P&G), Galderma and Kering releasing their latest quarterly results. 

Galderma reported record net sales of US$1.071 billion in Q1, surpassing the US$1 billion mark for the year’s first three months. P&G reported Q3 net sales of US$20.2 billion, an increase of 1% compared to the prior year. Meanwhile, Kering’s Q1 results saw group revenue dive 11% year-on-year to €4.5 million (US$4.8 million).

Galderma record sales
Galderma’s net sales were 12.4% year-on-year on a constant currency basis, primarily driven by volume.

“We started the year strong, continuing on Galderma’s growth trajectory and celebrating our first days of trading on the SIX Swiss Exchange,” says Fleming Ørnskov, CEO at Galderma. 

“This is a testament to our proven integrated dermatology strategy and the focus of our employees globally, each committed to serving our healthcare professionals, consumers and patients worldwide. With attractive growth across our product categories and geographies, we are confident in our financial outlook for the year.”

Galderma celebrated being available on the SIX Swiss Exchange in March of this year (Image credit: Galderma). P&G sector sale breakdown
The company’s Beauty segment organic sales increased by 3% versus a year ago. Skin and Personal Care organic sales declined by low single digits due to lower sales of the SK-II brand, partially offset by volume growth from innovation in Personal Care. Hair Care organic sales increased by “high” single digits, driven by increased pricing in Latin America, Europe and North America.

The organic sales of the grooming segment increased ten percent compared to a year ago, driven primarily by higher pricing in Latin America and Europe.

Oral Care organic sales increased by mid-single digits. Personal Health Care organic sales increased by low single digits driven by increased pricing, partially offset by volume declines due to lower incidence of cough and cold.

The Baby, Feminine and Family Care segment organic sales were unchanged year-over-year. Baby Care organic sales decreased mid-single digits due primarily to pricing-related volume declines, partially offset by a “favorable” product mix and devaluation-related price increases. Feminine Care organic sales increased by low single digits, driven by increased pricing and a “favorable” product mix, partially offset by pricing-related volume declines. Family Care organic sales increased by low single digits due to volume growth.

“We delivered solid sales and strong earnings growth in the third quarter despite multiple headwinds, enabling us to raise our EPS growth guidance and maintain our topline outlook for the fiscal year,” said Jon Moeller, P&G’s chairman of the board, president and CEO.

Kering’s lower luxury sales
Kering attributed the drop in revenue to a “backdrop of normalization in the luxury sector” and transitions within the group’s houses.P&G’s Feminine Care sector achieved an increase in sales, attributing it to a “favorable” product mix (Image credit: P&G). 

François-Henri Pinault, chairman and CEO, says: “Kering’s performance worsened considerably in the first quarter. While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline.” 

“In view of this revenue decline, together with our firm determination to continue investing selectively in the long-term appeal and distinctiveness of our brands, we now expect to deliver sharply lower operating profit in the first half of this year. All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth.”

The luxury goods conglomerate names Gucci’s performance for the lower sales. Revenue was down 21% for the brand. Yves Saint Laurent and Bottega Veneta also dropped 8% and 2%, respectively. Revenue from the group’s other house totaled €824 million (US$884 million), down 7% as reported.

By Sabine Waldeck