Procter & Gamble (NYSE:PG) reported on Tuesday that fiscal first-quarter revenue rose 9%, fueled by demand for its cleaning and laundry products during the coronavirus pandemic.
On the heels of the strong quarter, P&G raised its sales outlook and expectations for core earnings growth for fiscal 2021.
The company reported net income of $4.28 billion, or $1.63 per share, up from $3.59 billion, or $1.36 per share, a year earlier. Analysts were expecting earnings of $1.42 per share.
Net sales rose 9% to $19.32 billion, topping expectations of $18.38 billion. Organic revenue, which strips out the impact of acquisitions, divestitures and foreign currency, also climbed 9% in the quarter. Higher demand in North America, P&G’s largest market, helped drive sales growth.
All of P&G’s five business segments reported organic sales growth. CFO and COO Jon Moeller told the media that the U.S. saw growth of 16% and China reported growth of 12%. He told reporters on a press call that the company has not seen U.S. consumers opting for cheaper brands, despite the impasse in another stimulus package from the federal government.
Fabric and home care, which includes Tide and Comet cleaning products, saw the highest jump, with organic sales rising 14% in the quarter.
The home care segment saw organic sales soar 30%, fueled by demand for home cleaning products, like Mr. Clean.
Health care, which includes Crest toothpaste, Vicks, Pepto-Bismol and Oral-B, also reported double-digit organic sales growth. More consumers bought its digestive and wellness products.
Shares in the soap giant galloped $2.74, or 1.9%, to $144.65.
