P&G surpassed quarterly expectations with higher sales and profits. Demand for its dish soaps and toilet paper grew in the U.S., while China’s market showed signs of recovery after a rough period. Shares rose nearly 3%. CFO Andre Schulten noted a stable environment, blaming P&G’s investments in new products like Olay Melts face soap pads and Luvs diapers for customer retention. Despite pricing stability, sales growth was fueled by product launches aimed at capturing customers who left due to price hikes over the past two years.
P&G reported 4% organic sales growth in North America, driven by innovation. Meanwhile, China’s market fell 3%, though it improved from prior quarters. The U.S. remains a key focus for P&G as it continues its strategy of investing in new products to maintain growth. CEO Jon Moeller highlighted upcoming launches, including a low-cost Oral-B electric toothbrush and Crest whitening toothpaste, to boost sales this fiscal year despite pricing increases expected as the company expands its product lineup.
Despite China’s challenges, P&G maintained its annual forecast, acknowledging the dark spot in its market performance. The company also saw growth in its Japanese beauty brand SK-II in China, though overall consumption trends remain concerning. P&G’s net sales rose 2.1% to $21.88 billion, beating analyst expectations, while profits of $1.88 per share exceeded estimates.
Source: https://finance.yahoo.com/news/procter-gamble-beats-quarterly-sales-120430464.html