P&G ups full-year guidance as sales of Olay and Tide jump

Procter & Gamble has increased its full-year guidance after strong demand and higher prices helped the consumer goods giant deliver a strong third quarter.

The company, which owns a raft of household brands, including Olay, Fairy, Head & Shoulders and Pampers, said net sales were ahead 1% at $16.5bn. Organic sales, excluding the impact of foreign exchange, acquisitions and divestitures, rose 5% in the three months to March.

Net earnings at P&G were ahead 9% at $2.8bn.

As a result, management has increased its guidance for organic sales growth for the full year, from between 2% and 4% to “a solid 4%”, although it left its bottom line guidance unchanged. Total sales are expected to be flat to 1% higher.

On an organic basis, nearly all segments saw sales rise. Leading the way was beauty, ahead 9%, and fabric and home care, up 7%. The only exception was grooming, which includes the Gillette brand and saw sales ease 1%.

Higher prices also helped, with P&G noting that they “added two percentage points to organic sales”. There was also “strong growth” in developed markets and “disproportionate growth of premium priced products”, such as its high-end skincare range SK-II and Tide Pods detergent.

David Taylor, chairman, president and chief executive, said: “We delivered another quarter of strong organic sales growth, enabling us to further increase our outlook for the year.

“Our focus on superiority, productivity and improving P&G’s organisation and culture is delivering improved results despite a challenging competitive and macroeconomic environment.”