Procter & Gamble Co. (PG) – Get Report posted stronger-than-expected second quarter earnings Wednesday, and boosted its fiscal year profit outlook, as home cleaning and healthcare product sales continue to boost the group’s bottom line.
Procter & Gamble said core profits for the three months ending in December, the company’s fiscal second quarter, were pegged at $1.64 per share, up 15.5% from the same period last year and firmly ahead of the Street consensus forecast of $1.51 per share. Group revenues, Procter & Gamble said, rose 8% to $19.7 billion, again topping analysts’ estimates of a $19.27 billion tally.
Looking into the second half of the group’s fiscal year, which ends in June, Procter & Gamble said its sees organic sales growth of between 5% and 6%, up from a prior range of 4% to 5%, as well as core earnings growth of between 8% and 10%.
“We delivered another strong quarter of results across all key measures – top line, bottom line and cash,” said CEO David Taylor. “We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture. These strategies enabled us to build strong business momentum before the COVID crisis, accelerated our progress in calendar year 2020 and remain the right strategies to deliver balanced growth and value creation over the long term.”
Procter & Gamble shares were marked 2.4% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $136.75 each
Fabric and home care sales, which include cleaning products such as Comet, Joy, Febreze and Cascade, rose 12% from last year, just shy of the pace over the three months ending in September, while baby, feminine and family care segment sales were 6% higher and beauty sales rose 6%. Personal grooming sales, which includes skin care products, rose 5% from last year, Procter & Gamble said.