Procter & Gamble (NYSE:PG) on Friday topped analysts’ estimates for quarterly earnings and revenue as consumers bought more premium health and personal care products.
But the company warned that increasing commodity costs could hit its earnings in the upcoming year. Last week, rival Unilever (NYSE:UL) also noted that it is facing higher costs for packaging, ingredients and transportation.
P&G reported net income for the period ended June 30 of $2.9 billion, or $1.13 per share, compared with $2.8 billion, or $1.07 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $1.08.
Net sales rose 7% to $18.9 billion from $17.7 billion a year earlier. That beat Wall Street expectations for $18.41 billion. Organic sales climbed 4%.
P&G reported the strongest growth in its beauty and health care businesses, as consumers prepare to head back to the office and return to social gatherings.
The health-care business saw organic sales climb by 14%. Much of that growth came from the segment’s oral care products, which include Oral B toothbrushes.
P&G’s beauty segment reported organic revenue growth of 6%. The company saw continued demand for its premium SK-II brand. But it said some of the gains were offset from lower selling volumes in North America, due to inventory stocking issues.
PG shares galloped $3.35, or 2.4%, to $142.83.
