Procter & Gamble (PG) - Get Procter & Gamble Company Report posted stronger-than-expected first quarter earnings Tuesday, and boosted its full-year profit guidance, even as solid beauty sales for the consumer brands giant offset the impact of a stronger U.S. dollar.
Procter & Gamble said earnings for the three months ending in September, the company's fiscal first quarter, came it at $1.36 per share, up 11.5% from the same period last year and well ahead of the Street consensus forecast of $1.24 per share. Group revenues also beat the Street, rising 6.58% TO $17.8 billion.
Looking into the group's 2020 fiscal year, Procter & Gamble said it sees core earnings per share growth of between 5% and 10%, up from a prior forecast of 4% to 9% growth, while full-year sales should rise by as much as 5%.
"We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results," said CEO David Taylor. "We will continue executing our strategies of superiority, productivity, constructive disruption and improving P&G's organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment."
Procter & Gamble shares were marked 4% higher at the start of trading following the earnings release to change hands at $123.92 each, a move that would extend the stock's year-to-date gain to around 35.2%.
Organic sales in the group's beauty products division rose 10% from last year, Procter & Gamble said, thanks to solid gains driven by "premium innovation, positive product mix, primarily from the disproportionate growth of the super-premium SK-II brand and China Olay, and increased pricing."
"Hair Care organic sales increased mid-single digits driven by innovation and devaluation-driven price increases," the company said, while healthcare sales jumped 9% and baby, feminine and family care sales were up 5%.