Procter & Gamble reported a stellar start to fiscal year 2019, with organic sales lifting 4% and profit surging 15%, despite costs implied by trade tariffs between the U.S. and China.
First quarter net sales came in at $16.7 billion, in-line with the year-ago level, said the Cincinatti-based company in a statement.
“We generated strong consumption, organic volume and organic sales in the first quarter. This keeps us on track to deliver our top- and bottom-line targets for the fiscal year,” said David Taylor, Chairman, President and Chief Executive Officer.
“Our focus on superiority, productivity and improving P&G’s organization and culture is driving improved results.”
Net income for the first quarter of fiscal 2019 jumped to $3.2 billion, an 11.9 percent increase from the year-ago period.
Earnings per share were $1.22, an increase of 15% versus the prior year. Aside from profit, operating cash flow was $3.6 billion for the quarter.
Organic sales were driven by a three percent increase in shipment volume, adding to the “disproportionate organic growth” of the skin and personal care and personal health care categories and strong growth in the United States.
Beauty segment organic sales increased seven percent, while skin and personal care organic sales increased by double-digit, thanks to increased sales in super-premium SK-II brand and Olay Skin Care.
Grooming segment organic sales and Health Care increased four percent, while baby, feminine and family care fell 1 percent.
Looking ahead, P&G maintained its guidance for organic sales growth in the range of two to three percent for 2019, estimating all-in sales growth in the range of down two percent to in-line versus the prior fiscal year.
Core earnings per share growth of three to eight percent on last year’s $4.22 is expected in terms of profit growth, said P&G.