U.S. consumer products giant Procter & Gamble (PG) has reported quarterly earnings that beat analysts’ expectations on both the top and bottom lines.
The company, whose brands include Tide, Gillette and Febreze, also raised its forecast for organic sales growth this year to 6%, up from a previous estimate of 4% to 5%.
For the first quarter ended March 31, Procter & Gamble reported earnings per share of $1.37 U.S. versus $1.32 U.S. that had been forecast on Wall Street.
Revenue came in at $20.07 billion U.S. versus $19.32 billion U.S. that was anticipated by analysts who cover the company.
The company’s organic sales, which remove foreign currency conversions, acquisitions and divestitures, increased 7% in the quarter.
However, Procter & Gamble’s sales volumes fell 3% in Q1 as consumers opted for cheaper alternatives. The decrease in sales volumes was offset by price increases that averaged 10% year-over-year on its various products.
This was the fourth consecutive quarter of declining sales volumes at the company. All of Procter & Gamble’s divisions reported lower volumes in Q1, except for its health and beauty units, which each saw volumes rise 1%.
Procter & Gamble’s stock rose 2% in premarket trading on news of the earnings print. The company’s stock had been down 7% from a year ago at $150.85 U.S. a share.
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