Procter & Gamble (NYSE:PG) on Thursday reported strong quarterly revenue growth as consumers stuck at home bought more Tide laundry detergent and Mr. Clean products.
Even as lockdowns ease and consumers resume past behaviors, the consumer packaged goods giant expects to see higher demand for its products in fiscal 2021.
The Cincinnati-based P&G reported fiscal fourth-quarter net income of $2.8 billion, or $1.07 per share, up from a loss of $5.2 billion, or $2.12 per share, a year earlier.
Excluding items, the company earned $1.16 per share, topping the $1.01 per share expected by analysts.
Net sales rose 4% to $17.7 billion, beating expectations of $16.97 billion. Organic sales, which strip out the impact of currency fluctuations, acquisitions and divestitures, rose 6% during the quarter.
The company attributed the growth to higher demand in North America and China, its second-largest market, for its household cleaning and personal health products during the coronavirus crisis. Its fabric and home care segment, which includes Tide and Comet cleaning products, saw organic sales rise 14% in the quarter.
P&G’s baby, feminine and family care segment reported the second-highest increase to its organic sales, up 5%. The category includes Pampers diapers, Bounty paper towels and Charmin toilet paper.
In fiscal 2021, the company expects overall sales growth of 1% to 3% and organic revenue growth of 2% to 4%. It is forecasting earnings growth of 6% to 10%.
P&G also said it expects to pay out $8 billion in dividends and buy back $6 billion to $8 million in its own shares in fiscal 2021.
PG shares gained $2.06, or 1.6%, to $130.37.
