Procter & Gamble raised its annual sales forecast on Wednesday as the consumer goods giant is benefiting from higher prices and a resurgence in demand for cleaning products due to a rise in Covid-19 infections.
The company’s selective shares were up almost 1% before the US market opened as a better-than-expected 6% jump in quarterly turnover helped cushion the blow from rising freight and commodity costs.
P&G said sales in its home products unit, the largest segment and home to brands such as Tide Y Mr. Clean, were up 7% in its second quarter as the rapid spread of the omicron variant since late 2021 prompted consumers to once again stock up on detergents and surface disinfection products.
Organic sales in the personal health care business rose about 20% as a more intense flu season led to increased demand for respiratory products, P&G said.
Overall net sales rose to $20.95 billion, also helped by price hikes the company implemented last year to deal with higher product and freight costs. Analysts on average had expected revenue of $20.34 billion, according to IBES data from Refinitiv.
The razor maker Gillette It said it expects fiscal 2022 to see organic sales rise 4% to 5%, compared with its previous forecast of 2% to 4% growth.
P&G He said he now expects an impact of about $2.8 billion related to difficulties in access to basic products, freight costs and currency depreciation in the current fiscal year.