CINCINNATI (dpa-AFX) – Implemented price increases and an advantageous product mix are pushing the US consumer goods group Procter & Gamble (ProcterGamble) (P&G). The group with brands like Ariel, Pampers and Braun all performed better than analysts had expected for the fiscal third quarter ended March. That’s why the management raised its sales forecast, as the company announced on Friday in Cincinnati. The group stuck to its profit target. The news was well received on the stock exchange.
Shortly after trading began in New York, the P&G share rose by four percent and also drew the prices of competitors such as the Dax group (DAX 40) Beiersdorf upwards. The French cosmetics group L’Oreal (LOréal) surprised positively with its quarterly figures on Thursday.
For the full fiscal year through the end of June, P&G revenue is now expected to increase by one percent. Previously, the management had expected sales at the previous year’s level at best. On a comparable basis and adjusted for currency fluctuations, management expects an increase of six percent instead of the previous five percent. However, unfavorable exchange rates are likely to weigh on growth by around five percentage points. In terms of earnings per share, management continues to expect a value between the previous year’s level and an increase of up to four percent.
In the past quarter, sales increased by four percent year-on-year to $20.1 billion (18.3 billion euros). Adjusted for exchange rates and changes in the nature of the business, growth was seven percent. Higher prices and a more advantageous product mix compensated for a decline in volumes. The surplus increased by a good one percent to $3.4 billion. CEO Jon Moeller spoke of a persistently difficult cost and operating environment.
P&G pushed through strong price increases, especially for hair care products and cold remedies, and drove its sales in these areas up by double-digit percentages. The same was true for feminine hygiene products and household goods like air fresheners.
In Europe, the higher prices were not quite as able to compensate for the drop in demand in some areas. People bought less detergent, diapers, shaving and hair removal products./lew/stw/he
Leverage must be between 2 and 20
No data