Procter & Gamble Q1 revenues lifted by Covid-19 demand

Household products manufacturer Procter & Gamble saw first-quarter revenues rise on the back of increased demand for its cleaning and laundry products amid the Covid-19 pandemic.

P&G said on Tuesday that first-quarter revenues had increased 9% year-on-year to $19.32bn, beating analyst expectations for a reading of $18.38bn, while earning per share smashed estimates of $1.42 at $1.63 each.

Organic revenue also climbed 9% in the quarter as increased demand in North America, P&G's largest market, helped drive sales growth.

Fabric and home care reported the largest increase, with organic sales rising 14% in the quarter, while its beauty segment reported organic growth of 7% year-on-year.

As a result of the solid quarter, P&G raised its sales outlook and core earnings growth expectations for the year as a whole and now expects sales growth of 3-4% during 2021, up from its prior forecast of 1%-3%, while organic revenue was now projected to rise by 4-5%, up from 2-4%.

P&G also now plans to buy back more stock during the current trading year, with the company previously having said it would spend $6bn-8bn on buying back shares but now intends on dropping $7bn-9bn.

As of 1600 BST, P&G stocks were up 2.27% at $145.22 each.