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Demand Growth In Cleaning Products Prompts P&G To Raise Forecasts


10/21/2020


Demand Growth In Cleaning Products Prompts P&G To Raise Forecasts
A surge in demand and sale for its cleaning products because of the novel coronavirus pandemic prompted consumer goods giant Procter & Gamble Co to raise its annual sales forecast on Tuesday.
 
The company said that during the pandemic the sale of its cleaning products increased by as much as 30 per cent.
 
So far this year, the shares of the company were up by 14 per cent and following the upbeat forecast, they roe further by another 2 per cent.
 
The company reported strong performance and sales in most of its product business divisions.
 
In the company’s first quarter, there was a rise of 14 per cent in the overall net sales of the company in the business division that manufactures and sells products under popular brands such as Mr Clean and Tide. The company said that this as because of consumers stocking up on anything they could get their hands on to clean their homes and potentially slow the spread of the pandemic.
 
There as was also a 30 per cent growth in sale of the company’s "personal cleansing" products as it witnessed double digit growth in sale in all of the regions that the company operates in, P&G said. It also reported a 30 per cent growth in sale of products from its Home Care organic division.
 
A 12 per cent growth in terms of volumes in its Health Care segment, which offers popular brands such as Oral-B toothbrushes and Crest toothpaste, was also reported by P&G.
 
The company said that it no expected a rise of between 3 per cent and 4 per cent in full year sales for the company compared to its previous projection of a 1per cent to 3per cent overall growth.
 
The upbeat forecast by P&G was preceded recently by a raise of forecast for the year by its rival Reckitt Benckiser with the company reporting a surge in demand for its Lysol and Dettol cleaning products. According to the British consumer goods maker, there was a 50 per cent growth in sale of its Dettol brand during the quarter.
 
Its fiscal 2021 core earnings per share forecast was also raised and narrowed by the Cincinnati based P&G. The company is now expecting the metric to be rise by 5per cent to 8per cent. Previously the company had forecast growth of between 3 per cent and 7 per cent. P&G also enhanced its outlook for organic sales growth at between 4 per cent and 5 per cent compared to its previous projection of growth between 2 per cent and 4 per cent.
 
P&G will also be buying back more of its shares and has set a target of between $7 billion and $9 billion in fiscal 2021. It previously had set itself a target of share buyback of between $6 billion and $8 billion.
 
The net sales of P&G rose to $19.32 billion in the quarter compared to $17.80 billion in the previous quarter, said the maker of Gillette products.
 
(Source:www.channelnewsasia.com)


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