Consumer goods giant Procter & Gamble Co. (PG, Financial) recorded its strongest quarterly sales growth in five years when it reported its first-quarter 2019 earnings before the opening bell on Friday, sending shares up 5% in premarket trading.
The Cincinnati-based company, which produces consumer goods like Pampers diapers, Tide laundry detergent and Dawn dish soap, posted adjusted earnings of $1.12 per share, topping Refinitiv’s estimates of $1.09. Revenue of $16.69 billion beat expectations of $16.46 billion and saw a slight increase from the year-ago quarter.
The company attributed its performance to strong sales in its beauty division, which includes the Pantene shampoo and Old Spice deodorant brands, with organic sales growth of 7% and a 5% increase in net sales. The company also recorded a 2% net sales increase in its largest segment, fabric and home care. This helped offset net sales declines in its grooming, health care and baby, feminine and family care businesses.
In a statement, Chairman, President and CEO David Taylor said the company’s “focus on superiority, productivity and improving P&G’s organization and culture is driving improved results.”
He added that the company is on track to deliver its financial targets for the year. For fiscal 2019, Procter & Gamble expects organic sales growth of 2% to 3% and earnings per share growth of 3% to 8%.
With a market cap of $214.71 billion, Procter & Gamble shares were trading around $86.90 on Friday morning. GuruFocus estimates the stock has lost 5% year to date.
Regardless, it remains, by far, the top company in the consumer packaged goods industry with a 25% weight. According to the industry overview page, The Kraft Heinz Co. (KHC, Financial) comes in second with 8.1% and Mondelez International Inc. (MDLZ, Financial) is third with 7.1%.
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