P&G forecasts higher profit as COVID-19 pandemic drives cleaning boom

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P&G forecasts higher profit as COVID-19 pandemic drives cleaning boom
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Procter & Gamble Co beat Wall Street estimates for quarterly revenue on Thursday, benefiting from increased demand for its cleaning supplies as ...

CINCINNATI: Procter & Gamble Co forecast full-year sales and profit above Wall Street expectations on Thursday , benefiting from a surge in demand for detergents and toilet paper as pandemic lockdowns prompt cleaning drives at homes.

Shares of the company rose about 2 per cent in premarket trading after it also beat analysts' expectations for fourth-quarter revenue and profit.Hunkered down at home, people have focused on housekeeping and better hygiene, driving sales of P&G's Bounty paper towels, Charmin toilet paper and Tide detergent among other products.

P&G now forecasts fiscal 2021 adjusted profit to rise between 3 per cent to 7 per cent or US$5.27 to US$5.48 per share, while analysts were expecting profit of US$5.23 per share, according to IBES data from Refintiv. The company also expects sales to grow in the range of 1 per cent to 3 per cent, compared with estimates of a 1.93 per cent rise.

In the quarter ended Jun 30, sales from P&G's fabric and home care unit, its biggest business that makes Ariel detergent and Downy fabric softener saw 11 per cent increase to US$6.29 billion.Net earnings attributable was US$2.80 billion, or US$1.07 per share, in the fourth quarter ended June 30, compared with a loss of US$5.24 billion, or US$2.12 per share, a year earlier. The year ago quarter had an impairment charge of about US$8 billion.

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