Procter & Gamble (NYSE:PG) on Wednesday reported quarterly earnings and revenue that topped Wall Street’s expectations as price hikes helped offset higher commodity and freight costs.
On the heels of its strong performance, the company raised its outlook for sales growth but said it expects inflation to weigh even more heavily on its fiscal 2022 results.
The consumer giant reported fiscal second-quarter net income of $4.22 billion, or $1.66 per share, up from $3.85 billion, or $1.47 per share, a year earlier. Analysts were expecting $1.65 per share.
Net sales rose 6% to $20.95 billion, topping expectations of $20.34 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, also rose 6% in the quarter. About half of that growth came from the benefit of raising prices on select products.
The company’s health care and fabric and home care segments both saw organic sales jump 8%, tying for the highest of its divisions. The company said a more intense flu and cold season propelled organic sales for its personal health care business by 20% for the quarter, lifting demand for Vicks and ZzzQuil products. Its oral care products, which include Oral-B toothbrushes and Crest toothpaste, got a boost from price increases.
Price hikes also helped P&G’s home care segment, which includes Febreze and Mr. Clean. The pandemic has created more demand for cleaning products. P&G’s fabric care business saw double-digit growth, thanks to strong sales of fabric enhancers and laundry detergent pods.
PG shares surged $6.48, or 4.1%, to $163.21.
