Procter & Gamble shaves its costs and rakes in a rise in sales
US consumer goods giant Procter & Gamble has posted a surprise rise in sales that sent shares higher in New York, despite warning over growth in coming months.
P&G, which owns a variety of brands including Head and Shoulders shampoo and Gillette razors, reported a profit for the quarter of $2.7bn (£2.2bn), or 96 cents per share, up 4.2 per cent on 2015. Revenue was flat at $16.5bn.
President and chief executive David Taylor said he was pleased with the results but that they could do better: “We’re pleased with the progress we’re making but there is still more work to do to get back to the levels of balanced top and bottom-line growth and cash generation.”
P&G – which has struggled for years to accelerate sales growth and has underperformed smaller, nimbler rivals – has been slashing costs and commanding higher prices.
All five of P&G’s core segments recorded sales rises – two per cent in beauty, three per cent in grooming, five per cent in health care, four per cent in fabric and home care and four per cent in baby, feminine and family care.