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The
company's blue-chip stock rose nearly 1% in premarket trading as
a better-than-expected 6% jump in quarterly sales helped cushion
the blow from a bigger-than-previously forecast increase in
annual freight and commodity costs.
P&G said sales in its fabric & home care unit, the company's
biggest segment and home to brands such as Tide and Mr. Clean,
rose 7% in its second quarter, as the rapid spread of the
Omicron coronavirus variant since late last year led to
consumers stocking up again on detergents and surface cleaning
products.
Organic sales in the company's personal health care business
increased about 20% as a more intense flu season led to a rise
in demand for respiratory products, P&G said.
Overall net sales rose to $20.95 billion, also helped by price
increases the company implemented last year to cope with higher
commodity and freight costs. Analysts on average had expected
sales of $20.34 billion, according to IBES data from Refinitiv.
The Gillette razor maker said it expects fiscal 2022 organic
sales to rise 4% to 5%, compared with its prior forecast of a 2%
to 4% increase.
P&G said it now expects a hit of about $2.8 billion related to
commodity, freight and foreign exchange headwinds this fiscal
year, compared with a prior forecast of about $2.3 billion.
(Reporting by Uday Sampath and Siddharth Cavale in Bengaluru;
Editing by Maju Samuel)
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