P&G beats profit estimates as consumers stock up on toilet rolls, detergents

[BENGALURU] Procter & Gamble Co beat expectations for quarterly profit on Friday as consumers stocked up on everything from diapers and detergents to toilet rolls amid sweeping lockdowns around the world to curb the spread of the coronavirus.

P&G, which sells its product in more than 180 countries, recorded sales growth in three of its five units, sending its shares up 1.3 per cent in early trading on Friday.

The company also said it expects to pay over US$7.5 billion in dividends and repurchase US$7 billion to US$8 billion in shares in fiscal 2020.

Sales at its health care unit rose 7 per cent, while fabric, home care unit sales rose 8 per cent. The baby and feminine products business logged a 6 per cent rise in sales. Beauty and grooming were the two segments where sales fell.

Many of the company's products, including Bounty paper towels, Charmin toilet paper, Pampers diapers and Tampax tampons, have been in demand across US supermarkets in the past few weeks.

For the third quarter ended March 31, net sales rose about 5 per cent to US$17.21 billion as consumers stocked up during the last few weeks of the quarter in the United States.

Analysts were expecting sales of US$17.46 billion, according to IBES data from Refinitiv.

Excluding one-time items, the company earned US$1.17 per share, beating Wall Street estimates by 4 cents.

Net earnings attributable to the company rose to US$2.92 billion, or US$1.12 per share, in the quarter, from US$2.75 billion, or US$1.04 per share, a year earlier.

The company, however, cut its full-year sales growth target 3 per cent to 4 per cent from its prior forecast of 4 per cent to 5 per cent to account for currency fluctuation.

REUTERS