P&G raises FY forecast on higher demand for beauty products

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© Reuters. P&G raises FY forecast on higher demand for beauty products© Reuters. P&G raises FY forecast on higher demand for beauty products

(Reuters) – Procter & Gamble Co (N:) on Tuesday raised its full-year sales and profit forecasts after a better-than-expected first quarter, powered by demand for its premium beauty brands such as SK-II and China Olay.

The world’s no.1 personal care products maker forecast full-year core earnings growth in the range of 5% to 10%, compared with its prior estimate of 4% to 9% growth.

P&G expects full-year sales to grow as much as 5%, compared to earlier expectation of 4%. The company retained the lower end of 3% growth.

Organic sales, which excludes acquisitions, divestitures and currency effects, rose 7% in the first quarter.

The tide detergent maker saw solid growth in its beauty business and healthcare segment, with organic sales in its beauty business rising 10%.

Organic sales in the grooming unit, a sore point for the company, reported a 1% growth. It took an $8 billion writedown for its Gillette shaving business in the fourth quarter.

Overall, net sales climbed 6.6% to $17.80 billion, beating analysts’ average estimate of $17.42 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to $3.59 billion, or $1.36 per share, in the three months ended Sept. 30, from $3.20 billion, or $1.22 per share, a year earlier.

Excluding items, it earned $1.37 per share, beating estimate of $1.24.

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