P&G posts strong sales growth, driven by beauty and health care | Fin24
 
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P&G posts strong sales growth, driven by beauty and health care

Oct 19 2018 15:30
Lauren Coleman-Lochner, Bloomberg

Procter & Gamble posted its biggest growth in five years in a key sales measure last quarter, helped by gains in beauty and health care.

Organic sales, which exclude items like acquisitions and currency effects, rose 4%, topping analysts’ projections for 1.9% growth.

Key insights

In an environment when growth is hard to come by for big consumer products companies, the gain in organic sales was unexpectedly strong. P&G said the US drove much of the gain. It called out “strong double-digit” growth in Olay - a long-ailing brand - and in its SK-II luxury skin cream, which is popular in Asia.

The company is rolling out more innovative products like a greener Pampers diaper and getting them to market faster.

Billions in cost cuts are helping boost profit, even amid higher commodity costs and unfavourable foreign exchange trends.

P&G shares rose as much as 3.2% in early trading to $82.81 in New York. They have dropped 13% this year through Thursday’s close. Core earnings per share were $1.12 in the first quarter ended September 30. Analysts anticipated $1.08.

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