Procter & Gamble posts surprise sales rise, profit beats
(Reuters) - Procter & Gamble Co (PG.N) reported a surprise rise in first-quarter sales on Friday on strong demand for its beauty products and cleaning supplies, helping it in its fight against competition from cheaper store-branded products.
The logo for Procter & Gamble Co. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid
The company’s shares were up 3.4 percent before the opening bell. The stock has fallen 13 percent this year, underperforming the broader consumer products index.
Sales rose 5 percent in the consumer giant’s beauty business, driven by double-digit sales of its premium skin care brands SK-II and Olay.
Sales in its fabric and home care division, the biggest unit by sales, rose 2 percent. The unit sells Tide detergent and Febreze air fresheners among other products.
The company’s grooming business was a bright spot, seeing volume growth of 5 percent as price cuts boosted demand.
Net income attributable to the company rose to $3.20 billion, or $1.22 per share, in the first quarter ended Sept. 30, from $2.85 billion, or $1.06 per share, a year earlier.
Excluding items, the company earned $1.12 per share beating Wall Street estimate of $1.09 per share, according to I/B/E/S data from Refinitiv.
Net sales rose marginally to $16.69 billion from $16.65 billion. Analysts had expected overall sales to fall to $16.46 billion.
Reporting by Soundarya J in Bengaluru; Editing by Shounak Dasgupta
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