P&G reports Q1 profit that matches analysts’ estimates

PROCTER & Gamble, the world’s largest consumer-products company, reported first-quarter profit that matched analysts’ estimates as price increases and gains in emerging markets helped sales top projections.

Net income in the three months to the end of September fell to $3.02 billion (€2.15bn) from $3.08 billion a year earlier.

On a per share basis, profit rose to $1.03 because of a decrease in the number of outstanding shares, matching Bloomberg estimates.

Price increases across all divisions and regions to help make up for higher costs for commodities boosted sales by 4% in the quarter. Total sales at P&G, which last year generated two-thirds of its revenue from outside the US, rose 8.9% to $21.9bn, topping the $21.5bn average estimate of analysts.

“Given the somewhat improving trends seen in prices throughout the quarter, we suspect the drag from higher commodity prices will likely soon abate,” Wendy Nicholson, an analyst at Citigroup wrote in a note to investors earlier this month.

P&G, the maker of Charmin and Head & Shoulders, shares had gained less than 1% this year before yesterday.

Gross margin, or the percentage of sales left after subtracting the cost of goods sold, narrowed to 49.5% from 51.9% a year earlier.

The company reiterated its forecast for earnings per share in the 2012 fiscal year to be between $4.17 and $4.33.

Kimberly-Clark, the maker of Scott toilet paper and Huggies, this week cut the high end of its annual profit forecast amid lower demand in developed markets.