Procter & Gamble has reported its strongest quarterly results in five years with Q1 organic sales rising 4 percent, which is said to have been boosted by beauty and grooming products, according to Reuters.
During an earnings call, Chief Financial Officer Jon Moeller stated that the company was planning to raise prices of several products in home care, oral care and personal care in the US.
The sales rise sent shares in the company soaring, rising 7.9 percent to $86.55 – its largest single day boost in a decade.
Organic sales were up in the grooming arm by 4 percent, while baby care sales were down. Beauty sales grew 5 percent in the quarter with Moeller stating, “There isn’t a piece of our beauty business that isn’t growing right now, most of it growing at very attractive rates.”
The beauty department was driven by skincare brands Olay and SK-II with China faring the best, up 22 percent in the quarter and contributing 8 percent of overall sales.
Moeller stated, “In summary, a very strong quarter, solid consumption, volume and organic sales growth driving positive market share trends across categories and geographies. Strong constant currency core earnings per share growth and continued high levels of cash generated and returned to shareowners, all in the most dynamic and challenging environment we faced in a very long time.”
Continuing, he said, “We’re accelerating change to meet these increasing challenges and to further improve results. As you know, we’ve made a deliberate choice to invest in the superiority of products, packages, retail execution, marketing, and value, not just in the premium tier, but in each price tier where we compete, strengthening the long-term health and competitiveness of our brands.