Absorbent product giant Procter & Gamble, Cincinnati, OH, raised its outlook for the year after a jump in second-quarter profit of 12%. The company posted net income of $2.8 billion in the three months ended Dec. 31 versus $2.5 billion in the prior-year period. Revenue grew 8% to $19.7 billion from $18.3 billion in the year-ago quarter. Organic sales increased 5%, after P&G forecast an increase of 4% to 7%.
The company cited the strong quarter and progress in its integration of the Gillette Co., with the blades and razors division contributing an 11% sales increase led by the year-old Gillette fusion. The company also reported an 11% sales increase in its fabric care and home care segments, behind such products as Tide Simple Pleasures, Febreze Noticeables and the Swiffer duster line.
"This was another solid quarter of broad-based sales and earnings growth during a period of heavy Gillette integration activity," said A.G. Lafley, the company's chairman, president and chief executive. "The results this quarter and a positive outlook for sales and margin improvement give us confidence to raise our top and bottom line guidance for the fiscal year."
Total sales for the year are expected to grow by 10% to 12%, up from previous guidance for full-year sales growth of 9% to 11%. The guidance implies sales of $75 billion to $76.4 billion.
In its baby care and family care sectors, P&G’s net sales increased 5% to $3.1 billion during the quarter. Volume grew 2% behind mid-single digit growth in baby care. Baby care volume increased high-single digits in developing regions behind strong market share growth in Greater China and in Central and Eastern Europe.
In developed regions, baby care volume was up low-single digits. Pampers results were solid in North America due to continued growth of Baby Stages of Development and the Caterpillar stretch initiative on Pampers Baby Dry. This growth was partially offset by soft results on Pampers in Western Europe and Luvs in North America caused by low pricing of both branded and private label competitors.