On Wednesday, Procter & Gamble (NYSE: PG) increased its outlook for the second quarter following an 8% rise in revenue. Amid the increased demand for the company’s cleaning products, shaving and styling products throughout the pandemic, P&G continues to grow.
Consequently, the owner of Tide, now anticipates sales to jump 5% to 6% during fiscal 2021. Its previous outlook had stipulated a 3% to 4% growth. Furthermore, the company expects its adjusted earnings to grow 8% – 10%, a jump from its previous outlook of 5% – 8%.
“We’re building on strong momentum that we built over the last number of years. And that’s continuing through the COVID environment,” P&G COO and CFO Jon Moeller said.
The company reported earnings of USD1.64 per share in comparison to the anticipated USD1.51 a share. Revenue amounted to USD19.75 Billion compared to analysts expected USD19.27 Billion.
New products were distinguished as the force behind the lift in the quarter’s sales.
“It’s a combination of products that were planned and a quick response to real, emerging needs,” Moeller explained while speaking to CNBC’s “Squawk Box.”
However, Wall Street remains skeptical on how the company will maintain the momentum and “comp the comp” within the second half of 2021. Many wonder if the company can compete with the strong sales it experienced at the height of the pandemic a year ago. With Covid-19 vaccines rolling out, it could mean less sales for P&G.
“We’re looking forward to serving what we believe will be a forever altered consumer need for products that help them with health hygiene and a clean home. There are habits that are being formed during this unfortunately long COVID period that we believe will continue to some degree post COVID,” Moeller said.