Procter & Gamble's quarterly sales and profit topped market expectations, helped by steady demand for its personal care products and cleaning supplies as well as price hikes.
P&G has consistently raised prices of its products over the past several months. While that has led to weaker sales volumes as some cost-conscious shoppers turn to cheaper alternatives, the benefits from higher prices have helped bolster its profits.
The Pantene shampoo maker saw overall prices jump 7% in the first quarter, while total sales volume dropped 1%, consistent with the levels seen in the prior quarter.
Despite volumes still being negative, P&G's volume performance has been stronger over the past several weeks, UBS analysts have said, noting the company's volumes are likely to fare better than most others in the consumer goods industry.
Higher prices, coupled with the easing in costs of some commodities as well as stabilisation in other supply chain and input expenses for P&G, have aided a steady a recovery in its margins.
Shares in the company rose about 1% in premarket trading.
P&G said it now expected sales growth to be in the range of 2% to 4% for fiscal 2024, compared to its prior estimate of a 3% t0 4% rise.
Net sales at the consumer goods giant rose to $21.87 billion (€20.7 billion) in the fiscal first quarter, from $20.61 billion a year earlier, beating analysts' average estimate of $21.58 billion (€20.4 billion), according to LSEG data.
P&G, which maintained its forecast for annual profit to grow 6% to 9% to $6.25 to $6.43 per share, has consistently topped market expectations for sales for more than three years so far.
The company posted a profit of $1.83 per share, above estimates of $1.72 per share.
“We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales and core EPS growth,” said Jon Moeller, chair of the board, president and chief executive officer.
News by Reuters, additional reporting by ESM.