P&G beats sales targets, maintaining annual forecast

Procter & Gamble (P&G), beat quarterly estimates for sales and profit on Wednesday, with its beauty category growing 2% versus the previous year.

Shares in the American multinational rose nearly 3%.

A behemoth of the consumer goods sector, P&G's quarterly net sales rose 2.1% to $21.88 billion (£17.6 billion). It made profits of $1.88 per share (£1.51), beating estimates of $1.86 (£1.50).

The company's sales in North America grew 4% during the quarter, as it doubled down on investments in new products, launching products such as the Olay Melts Face Soap Pads, to lure back customers who had begun spending elsewhere due to repeated price hikes in the last two years.

Haircare organic sales increased 3%, driven by volume growth in North America, Europe and Latin America, alongside a "favourable geographic and premium product mix", partially offset by volume declines primarily in Greater China.

In the personal care category, organic sales increased double digits, driven by innovation-based volume growth.

However, skincare sales declined mid-single digits due to volume declines, partially offset by "favourable product mix from higher sales of the super-premium SK-II brand".

Grooming segment sales increased 2% versus the year prior.

P&G maintained its guidance range for FY25 sales growth to be in the range of 2-4%, compared with the previous year.

Jon Moeller, CEO, President and Chairman of at P&G, said: "Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year.

"We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organisation.

"This strategy has enabled our solid results and is a foundation for balanced growth and value creation."