Procter & Gamble (PG 0.38%), the consumer goods giant, grew profit in the third quarter of its fiscal 2024 even as revenue grew only slightly. Here's a summary of the company's quarterly filing.

Profitability grows faster than revenue

Even though net sales rose only 1% in the quarter ending March 31, Procter & Gamble's net earnings rose 10% to $3.8 billion, as diluted earnings per share ticked up 11% to $1.52. Meanwhile, operating income increased by 5%, up to $4.5 billion.

Another notable financial metric is the gross margin, which improved by 300 basis points from 48.2% to 51.2%. Management cited three reasons for the gains: more productive manufacturing, lower commodity costs, and higher pricing. At the same time, selling, general, and administrative expenses (SG&A) rose from 27% to 29.1% of net sales as the company spent more on marketing and overhead.

Most segments inch forward

Procter & Gamble operates in five main product segments, most of which grew sales 2-3%. The one exception was baby, feminine, and healthcare, which pulled back 2% as unit volume decreased.

The winners included fabric and home care, the company's largest segment at 35%, which saw net earnings tick up 11%; and beauty, which benefited from higher pricing despite weakness in the SK-II luxury skin care line. And the grooming segment, though small by comparison, grew organic sales 10%.

What's next for Procter & Gamble?

The company has identified next steps for its operations in Argentina and Nigeria as part of a limited market portfolio restructuring due to challenging macroeconomic and fiscal conditions. It plans to record restructuring charges of $1 billion to $1.5 billion after tax, related mainly to non-cash foreign currency translation losses from substantially liquidating operations in these markets, with charges expected in fiscal years 2024 and 2025.

This action is an extension of the company's ongoing restructuring activities aimed at maintaining a competitive cost structure, indicating that while the scale of charges is larger than usual, restructuring itself is not out of the ordinary for Procter & Gamble.