THE WHAT? Procter & Gamble (P&G) has reported a Q1 2021 sales rise of 9 percent, fuelled by a stronger call for its household goods amidst COVID-19, as well as higher demand in North America, the company’s largest market.
THE DETAILS The personal care giant achieved revenue of $19.32 billion as opposed to the $18.38 billion expected by Wall Street analysts, while earnings per share were $1.63 in comparison to $1.42 predicted.
While all five business segments reported organic sales growth, home care grew 30 percent, while health care, such as Vicks and Crest toothpaste, reported double digit growth, with a strong consumer uptake for wellness and digestive products.
The launch of new Olay products as well as Safeguard hand soap and sanitizer bolstered the beauty sector, which rose 7 percent. Skin and personal care was driven by innovation in North America and Greater China.
Despite Gillette and Venus reporting flat sales due to men not shaving as much during the pandemic, the grooming sector increased 6 percent thanks to increase in demand for dry shaving and styling products.
Shares jumped 2 percent following the news.
THE WHY? Such is the boost to its sales, P&G has raised its sales outlook for fiscal 2021 to between 3 and 4 percent, up from its previous forecast of 1 to 3 percent.
Discussing the company’s strategy going forwards, David Taylor, Chairman, President and Chief Executive Officer, said, “We remain firmly focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation.”