Procter and Gamble (NYSE:PG)
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2 Months : From Oct 2019 to Dec 2019
By Sharon Terlep
Procter & Gamble Co. said sales rose across all of its business lines in its latest quarter, as consumers continued to pay higher prices for household goods despite slower global growth and worries about tariffs.
The maker of Tide laundry detergent and Pampers diapers on Tuesday reported that organic sales, which excludes currency fluctuations, acquisitions and asset sales, rose 7%, continuing a streak of solid growth. Net sales were $17.8 billion in sales for its fiscal first quarter, surpassing forecasts from analysts polled by FactSet.
Overall sales volumes for the quarter increased 7%, while prices rose 1%.
For the quarter ended Aug. 31, net earnings at the Cincinnati-based company rose to $3.6 billion, or $1.41 a share, from $3.2 billion, or $1.26 a share, a year earlier. P&G's core earnings of $1.37 a share beat predictions from analysts.
P&G notched its best quarterly sales gains in its beauty segment, where organic sales increased 10% in part on higher demand for skincare products in China, namely its high-end SK-II brand.
Organic sales in the fabric and home-care business were up 8%, while sales in the health-care segment rose 9%.
P&G increased its outlook for the year, and now expects organic-sales growth of 3% to 5%, up from 3% to 4% for its 2020 fiscal year. Core earnings, which exclude certain costs, are expected to increase 5% to 10% for the year, up from 4% to 9% for the year.
Despite challenges in its Gillette razor business, P&G has been bolstered by stronger consumer spending this year. The grooming business, which includes Gillette, had a 1% rise in organic sales, the weakest growth of all the units.
Economic growth remains a concern. Household spending in the U.S. ticked up 0.1% on a seasonally adjusted basis in August from July, lower than the average gains during the first seven months of the year. Last week, the International Monetary Fund cut its forecast for global economic growth this year to 3%.
--Micah Maidenberg contributed to this article
(END) Dow Jones Newswires
October 22, 2019 08:08 ET (12:08 GMT)
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