Olay sales boost P&G

Olay sales boost P&G

Procter & Gamble has raised its full-year sales forecast and beat Wall St estimates for quarterly revenue and profit, driven by price increases and robust demand for detergent and premium skincare brands.

And the shares of the world’s largest consumer goods maker rose.

Procter & Gamble, like other traditional consumer-goods companies, has been facing a string of challenges, including stiff competition from supermarket brands and direct-to-consumer start-ups, as well as higher commodity costs.

To counter this, Procter & Gamble has been launching newer products in its beauty and fabric care business, while also raising prices.

Core sales in the beauty business rose 8%, driven by strong demand for its premium SK-II and Olay skin care brands, while feminine care business, which includes brands such as Tampax and Whisper, also witnessed high single-digit growth. Overall core sales in the second quarter, which exclude items like acquisitions and foreign currency impact, rose 4%.

Fabric and home care business, which includes brands such as Tide and Ariel, rose 2% to $5.56bn (€4.89bn). The business is Procter & Gamble’s biggest contributor to sales.

The company said it now expects full-year sales growth to range between a decline of 1% and a rise of 1%. The top end of its full-year forecast for core sales was also raised by 1%.

“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 chief executive David Taylor. In contrast, industry peer Kimberly-Clark said it expects the environment in 2019 to remain challenging, while its quarterly profit misses expectations.

Procter & Gamble said net income attributable to the company rose 28% to $3.19bn in the second quarter to the end of December.

Excluding items, the company earned $1.25 per share, beating analysts’ estimates of $1.21 per share.

Net sales rose marginally to $17.44bn, beating analysts’ average estimate of $17.15bn, according to Ibes data from Refinitiv.

- Reuters

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