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Procter & Gamble boosts sales outlook as earnings jump
[NEW YORK] Consumer goods giant Procter & Gamble lifted its full-year sales targets Wednesday, boosting shares, after reporting higher profits and sales growth in some key product areas.
P&G - whose brands include Crest toothpaste, Tide detergent and Bounty paper towel - reported second-quarter profits of US$3.2 billion, up 28 per cent due to a one-time hit in the year-ago period from US tax reform.
Revenues were flat at US$17.4 billion.
The company said it had lifted its targets due to higher sales in several key product areas when currency movements and acquisitions and divestitures were excluded - so-called "organic sales."
Especially strong areas included beauty, where premium skin products sold well, and fabric and home care, where high-end brands also sold well.
But sales fell again in grooming, home to P&G's struggling Gillette business, which has faced pressure from online shaving companies amid a shift in tastes and greater cultural preference for beards.
Higher prices lifted organic sales by one percent. P&G last year announced price hikes on several paper products such as toilet paper and tissues.
"We delivered strong organic sales in the second quarter, building on our first quarter momentum, which enables us to increase our outlook for the year," said chief executive David Taylor.