P&G Raises FY Forecast On Higher Demand For Beauty Products
Procter & Gamble Co on Tuesday raised its full-year sales and profit forecasts after a better-than-expected first quarter, powered by demand for its premium beauty brands such as SK-II and China Olay.
The world's no.1 personal care products maker forecast full-year core earnings growth in the range of 5% to 10%, compared with its prior estimate of 4% to 9% growth.
P&G expects full-year sales to grow as much as 5%, compared to earlier expectation of 4%. The company retained the lower end of 3% growth.
Organic sales, which excludes acquisitions, divestitures and currency effects, rose 7% in the first quarter.
The tide detergent maker saw solid growth in its beauty business and healthcare segment, with organic sales in its beauty business rising 10%.
Organic sales in the grooming unit, a sore point for the company, reported a 1% growth. It took an $8 billion (€7.2 billion) writedown for its Gillette shaving business in the fourth quarter.
Overall, net sales climbed 6.6% to $17.80 billion (€16 billion), beating analysts' average estimate of $17.42 billion (€15.6 billion), according to IBES data from Refinitiv.
Net income attributable to the company rose to $3.59 billion (€3.2 billion), or $1.36 per share, in the three months ended 30 September, from $3.20 billion (€2.9 billion), or $1.22 per share, a year earlier.
Excluding items, it earned $1.37 per share, beating estimate of $1.24.