Consumer products giant Procter & Gamble (PG) posted a 9% increase in first-quarter profit, driven by price increases and double-digit developing markets.
Still, instability in the commodity, energy and foreign exchange markets led the company to lower the bottom end of its fiscal year earnings outlook by 3 cents.
P&G said its net income for the quarter jumped to $3.35 billion, or $1.03 a share, from $3.08 billion, or 92 cents a share, the year prior. The results were in line with those put forth by analysts polled by Thomson Reuters.
The Cincinatti-based household products company said sales came in at $22 billion, driven by growth in the Beauty, Fabric Care, Home Care and Baby Care & Family Care segments. Some of the top-performing products for the quarter include Gillette Fusion razors, Head & Shoulders hair products, Cover Girl and SKII cosmetics and Gain detergent, which all saw double-digit growth.
The company said 3% of its net sales were as a result of price increases, while another 5% were attributed to favorable foreign exchange rates.
Looking ahead, P&G said it expects to take a 1-2% hit from foreign exchange, and now projects its fiscal year earnings to fall between $4.15 and $4.25, as opposed to earlier estimates of $4.18 to $4.25. The forecast includes an estimated 50 cents a share gain from its Folgers divestiture and a hit of 12 cents per share in restructuring charges.
Chairman and Chief Executive A.G. Lafley believes consumers’ daily reliance on P&G’s products strengthens his confidence that the company “will deliver target growth over the long term, even in a challenging economic environment,” according to a release.
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