P&G Q2 profit and sales beat Wall Street estimates

Company has been shedding unprofitable brands as it focuses on core brands, to boost sales

Procter & Gamble Co, maker of Tide detergent and Pampers diapers, reported better-than-expected quarterly sales and profit, helped by demand for its healthcare products.

Shares of the company, which raised its fiscal 2017 forecast for organic sales growth, were up 2 per cent before the bell on Friday.

P&G has been shedding unprofitable brands as it focuses on core brands, including Tide and Gillette, to boost sales. The company sold 41 of its brands last year, including Clairol and COVERGIRL, to Coty Inc for $12.5 billion.

Cincinnati, Ohio-based P&G said its core earnings per share, which excludes restructuring charges and other items, was $1.08, in the second quarter ended Dec 31.

 

Analysts expected a profit of $1.06 per share, according to Thomson Reuters.

Net income attributable to the company rose to $7.88 billion, or $2.88 per share, from $3.21 billion, or $1.12 per share, a year earlier. The latest quarter included a gain from discontinued operations, including brands sold to Coty.

Net sales of $16.85 billion came in ahead of Wall Street estimates of $16.77 billion.

"Stronger top-line performance in the first half of the financial year is enabling us to increase our organic sales growth outlook for the full year," Chief Executive David Taylor said in a statement.

P&G said it expects organic sales to grow 2 to 3 per cent, up from its previous forecast of about 2 per cent.