Procter & Gamble's Second-Quarter Sales Beat Estimates
Procter & Gamble Co's revenue and profit topped Wall Street estimates in the group's second quarter, driven by price increases and robust demand for fabric care products and premium skin care brands.
Shares of the world's largest fast-moving consumer goods maker rose 3% in early trading after the company also raised the high end of its full-year forecast for core sales growth by 1%.
To counter stiff competition from private-label brands and direct-to-consumer start-ups, P&G has been investing more in its beauty and feminine care products, while raising prices to offset higher raw material and transportation costs.
Rise In Organic Sales
Organic sales for the second quarter, which exclude items like acquisitions and currency effects, rose 4%. Analysts on average were expecting growth of 2.4%.
“We delivered strong organic sales in the second quarter, building on our first quarter momentum, which enables us to increase our outlook for the year,” said David Taylor, chairman, president and chief executive.
“Our focus on superiority, productivity and improving P&G’s organisation and culture is delivering improved results despite a challenging competitive and macroeconomic environment.”
Fabric and home care business, which includes brands such as Tide and Ariel, rose 2% to $5.56 billion (€4.9 billion), beating analysts' estimate of $5.41 billion (€4.8 billion). The business is P&G's biggest contributor to sales.
P&G said net income attributable to the company rose to $3.19 billion (€2.8 billion), or $1.22 per share, in the second quarter ended 31 December 2018 from $2.50 billion (€2.2 billion), or 93 cents per share, a year earlier.
Excluding items, the company earned $1.25 per share, beating analysts' estimate of $1.21 per share.
Net sales rose marginally to $17.44 billion, beating analysts' average estimate of $17.15 billion, according to IBES data from Refinitiv.