P&G raises sales forecast for rising prices and demand for hygiene products continues Reuters

(Reuters) – Procter & Gamble boosted its annual sales forecast on Wednesday as consumer goods outperformed higher prices and demand for cleaning products amid rising COVID-19 infections.

The company’s shares rose nearly 2% in pre-market trading, as strong quarter-on-quarter sales helped alleviate the impact of higher-than-expected year-over-year sales and commodity cost increases.

Clothes and home care products sales, Tide and Mr. Including Clean, they rose 7% in the second quarter as the rapid spread of the Omicron coronavirus variant prompted consumers to purchase more cleaning products.

A more intense flu season also increased organic demand for personal health products by 20%.

This, together with the rise in prices to offset higher costs of goods and merchandise, increased net sales by 6% to $ 20.9 trillion. Analysts had expected $ 20.34 trillion, according to Refinitiv IBES data.

Inflationary pressures are expected to continue for some time, the P&G chief financial officer said, with the company forecasting $ 2.8 billion in wind this year against raw materials, merchandise and foreign exchange, compared to $ 2.3 billion previously expected.

P&G also raised its forecast for organic growth in fiscal sales by 2022% from 4% to 5%, previously from 2% to 4%, and said it would buy $ 9 billion to $ 10 trillion of shares compared to the previously expected $ 7 billion to $ 9 billion . .

P&G also eased speculation that GlaxoSmithKline (NYSE:) might be interested in buying the consumer health business, which has sparked interest from European partner Unilever (NYSE :).

In an interview with CNBC, CEO Jon Moeller said he was “very happy with the current portfolio” and did not see the need for a large purchase.

On Saturday, GSK rejected Unilever’s offer of $ 68.4 billion to its consumer base, saying it was underestimated and said it would stick to plans to separate the entity’s list this year.