The Procter & Gamble Company (PG) announced its fiscal second-quarter revenue this week with an 8% increase in revenue driven by the huge demand for its cleaning products and grooming tools, as the pandemic continued to impact consumer behavior. The consumer giant also raised its fiscal 2021 outlook for the second consecutive quarter, it expects sales growth of 5% to 6% in fiscal 2021, up from its prior outlook of 3% to 4% growth. It is also expecting its adjusted earnings to rise 8% to 10%, up from the previous target of 5% to 8%.
Key Earning Figures:
- Adjusted Earnings per share of $1.64 was reported, versus $1.51 expected.
- Revenue stood at $19.75 billion versus $19.27 billion expected.
- Net income of $3.85 billion, or $1.47 per share was reported, an increase from $3.72 billion, or $1.41 per share, a year earlier.
- Net sales increased 8% to $19.75 billion, exceeding expectations of $19.27 billion.
- P&G’s fabric and home care segment witnessed organic sales rise 12% in the quarter, the company’s largest increase by business unit.
- Home care unit including Comet cleaning products, saw organic sales growth of 30% as more consumers cleaned surfaces and dishes.
- Its health-care segment, which includes Oral B and Vicks products, reported organic sales growth of 9%.
- The grooming and baby, feminine, and family care segments saw organic sales rise 6% in the quarter.
- Organic sales of P&G’s grooming appliances increased 20% as consumers look for at-home styling and shaving products.
- P&G’s beauty segment including products such as Olay and SK-II reported organic sales growth of 5%.
- The company expects it will buy back as much as $10 billion of its own stock during the fiscal year, up from a prior estimate of $7 billion to $9 billion.
New products helped boost the quarter’s sales for example its Microban 24-hour disinfecting spray, launched in February just before U.S. consumers began buying up every cleaning product they could find because of the pandemic.
“It’s a combination of products that were planned and a quick response to real, emerging needs,” stated CFO and COO Jon Moeller.
The Procter & Gamble Company (PG), a Dow 30 component, supplies branded consumer packaged goods to consumers across the globe. To learn more about Procter & Gamble (PG) and to continue to track its progress please visit the Vista Partners Procter & Gamble Coverage Page.
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