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Bloomberg
Procter & Gamble (P&G) Co climbed after raising the high end of its full-year sales forecast and posting organic sales growth across all its divisions.
Organic sales, which exclude things like acquisitions and currency fluctuations, rose 7% in its fiscal first quarter, topping the average of analysts’ projections for 4.8% growth. Revenue in fiscal 2020 will increase 3% to 5%, the company said. It had previously forecast 3% to 4%.
P&G’s actions to make the business more lean are paying off. The results show the company is keeping up the momentum, matching the previous quarter’s fastest organic sales growth in more than a decade.
CEO David Taylor has said that a revised management structure is helping the company make swifter decisions.
Raising prices is still proving to be a successful strategy. The company said pricing added 1 percentage point to organic sales. When asked during a call with analysts about the potential for a slowdown in consumer spending, Chief Financial Officer Jon Moeller said P&G is in a better position than in 2007 because it moved out of discretionary products.