As a consistent Top 5 radio advertiser, Procter & Gamble has placed as many as eight products among the top 100 weekly local vendors, while for all of 2018, P&G was radio’s fifth largest advertiser, based on spot count, according to data from Media Monitors, which tracks radio advertising in 85 markets. Looks like the consumer goods behemoth is onto something, based on strong fiscal first quarter earnings.
Procter & Gamble Co. reported Tuesday net income of $3.59 billion, or $1.36 per share, up from $3.2 billion, or $1.22 per share, a year earlier. P&G earned $1.37 per share, beating an estimate of $1.24 per share expected by analysts, according to CNBC’s reporting. Net sales rose 7% to $17.80 billion, topping expectations of $17.42 billion.
“P&G beat analyst expectations by two percentage points on the top line and 13 cents in adjusted earnings per share, continuing a streak of upside surprises… amid continuing cuts in agency and other creative costs, but with a significant hike in media spending,” AdAge reported.
In fact, P&G raised its outlook for fiscal 2020 all-in sales growth from a range of 3% to 4% to a range of 3% to 5% growth compared with the prior fiscal year, according to multiple news reports. It also said it now expects its core earnings per share to grow between 4% and 10% in fiscal 2020, from original expectations of 4% to 9% growth.
During the company’s previous quarterly earnings call, Jon Moeller, Vice Chairman, COO and CFO explained that the CPG giant attributes its good fortune, in part, to “innovation-driven market sales and share growth, meaningful gross margin expansion, while investing and product impacted superiority increased investments in media and other demand creation marketing programs.”
And at the Radio Show last month, as Inside Radio reported, Procter & Gamble Senior Media Analyst John Fix stressed to attendees that radio delivers much needed reach for the company, after it dramatically amped its over-the-air spend two years ago.
There seems to be no sign of slowing down its radio rally. Just two weeks ago, for the first time ever, P&G had two of its products ranked among the top 10 national advertisers on Media Monitors’ weekly tally: Vicks was No. 8 and Tide reached the top 10 for the first time ever, roaring to No. 9 from No. 87. Four other P&G products were also in the top 50: Downy, Bounty, Crest and Charmin.
P&G’s strongest growth came from its beauty, health care and fabric and home care lines, according to CNBC. Its health-care business, which includes Crest toothpaste and Oral-B, grew 9%, and fabric and home care, which includes Tide and Downy, grew 8%.