P&G raises forecasts on sustained demand for cleaning products

In this news, we discuss the P&G raises forecasts on sustained demand for cleaning products.

(Reuters) – Procter & Gamble Co PG.N raised its forecast for annual sales and profits on Tuesday, as coronavirus-linked home cleaning pushed sales of the consumer goods giant’s home care products up at 30% higher.

P&G shares, up 14% this year, are up another 2% after figures suggest consumers are spending the money they’ve saved by traveling and socializing less this year on its more branded products. Dear.

Detergent maker Tide and Ariel also benefited from the fact that people washed their clothes more often, and its organic sales grew 9% overall in the first quarter.

Grooming products also saw their first increase in sales growth since the start of the year, as electronics stores in Europe placed more orders for clippers and other styling products.

While demand from retailers remains high, the company warned it would not stay at levels seen during the July to September period, when most economies relaxed lockdowns and orders resumed.

Sales of home care products like Mr Clean have grown by double-digit percentages in its regions and sales of personal cleaning products have increased by 30%, said P&G CFO Jon Moeller.

It showed the resilience of its branded products, Moeller said, while calling for a drop in the share of store brand labels in the United States and Europe.

P&G said it now expects sales for the entire year to increase by 3% to 4%, compared to previous forecasts of 1% to 3%.

Earlier today, Lysol maker Reckitt Benckiser RB.L also raised its outlook for the full year, showing that demand is still healthy in the industry despite difficult economic conditions.

“There’s just… a willingness to spend a little more to make sure I’m using a product that… will work for me and for my family,” Moeller said on a media call.

P&G also expects full-year basic earnings per share to rise 5% to 8%, from 3% to 7% earlier, and said it would aim to buy back $ 7 billion to $ 9 billion from ‘actions during fiscal year 2021.

Reporting by Uday Sampath and Siddharth Cavale in Bengaluru; Edited by Shounak Dasgupta, Patrick Graham and Saumyadeb Chakrabarty

Original © Thomson Reuters

Originally posted 2020-10-20 08:26:10.

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