Procter & Gamble raises forecasts as it capitalizes on pandemic-induced cleaning surge

Procter & Gamble raises forecasts as it capitalizes on pandemic-induced cleaning surge

THE WHAT? Procter & Gamble has raised its annual forecasts again thanks to the surge in demand for paper towels, washing-up liquid and laundry detergent, according to a report by the Financial Times. 

THE DETAILS The personal care giant said it was on track for an annual forecast of between 5 and 6 percent in fiscal 2021, up from 3 and 4 percent, stating that brands such as Ariel, Bounty, Tampax, Pampers and Head & Shoulders would continue to grow following the vaccine rollouts. 

Second quarter revenue rose 8 percent, bolstered by the desire for cleaning, shaving and styling products, with P&G predicting its adjusted earnings to rise between 8 to 10 per cent, up from the previous target of 5 to 8 percent.

The company’s grooming and baby, feminine and family care reported a 6 percent rise in the quarter, while grooming appliances leapt 20 percent. The beauty segment rose 5 percent. 

THE WHY? Lockdown stay-at-home mandates have fuelled a surge in cleaning and household chores, as well as a boom in personal care styling products – trends that have been reflected in Procter & Gamble’s financial results. 

Looking forward and analysing whether the freedom of movement to come following vaccine rollouts would pour water on the rising sales, company COO and CFO Jon Moeller highlighted China’s 12 percent rise as an example, due to the country having very few COVID cases. 

He stated, “If that’s representative, there’s no indication that vaccine availability, more social mobility, is inherently a demand reducer.”

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