Ananya Mariam Rajesh and Jessica Dinapoli
(Reuters) - Advance and Gambling quarterly estimates for quarterly sales and profits on Wednesday came as demand for dish soap and toilet paper increased in the United States while the Chinese market showed signs of recovery after several tough quarters.
Shares of P&G, considered a leader in the consumer staples industry, gained nearly 3%.
"We see a relatively stable environment that we expect will continue into the second half of the year," Chief Financial Officer Andre Schulten said in a post-graduation call. "We are investing in strong innovation to emerge from the Benefit from this stable consumption environment in the United States.”
P&G's North American sales rose 4% in the quarter as the company doubled down on investment in new products, launching products like Olay Melts Face Soap Pads and Luvs Diaper to lure movers amid repeated price hikes. Price customers. The last two years.
Christian Greiner, senior portfolio manager at F/M Investments, which holds shares in Procter & Gamble Co. (P&G), said he was somewhat surprised that pricing was flat but volumes increased in some verticals.
"It gives (you) confidence that over the next few quarters, you can really see some momentum."
Ba&G reported overall organic volume growth of 2% for the quarter, while average prices across its product categories remained flat. The company has previously relied on pricing to boost sales growth after a pandemic-led downturn.
Executives said on a conference call with investors that more new products are now in the pipeline.
P&G CEO Jon Moeller said new items including a low-cost oral electric toothbrush, Crown toothpaste and Zevo insect repellent will help drive sales for the remainder of the fiscal year.
However, as the company develops more products, there will be "modest price increases" as we move forward.
However, P&G's annual forecast remains unchanged as China remains a dark place. Second-quarter sales in China, one of the company's largest markets, fell 3%, despite sales falling 15% and 9% in the previous two quarters.
Sales of its Japanese beauty brand SK-II in China fell 5% in the second quarter due to anti-Japanese sentiment. The company began to see issues related to demand for the brand.
Moeller said that despite the brand's growth in China, the country's overall consumer trends remain concerning because "wide swaths of society are not confident and are still struggling... In China, it will take some time to get there." Reliable growth."
The company's quarterly net sales rose 2.1% to $21.88 billion, compared with analysts' expectations of $21.54 billion, according to LSEG data.
Its profit was $1.88 per share, compared with estimates of $1.86.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Jessica Dinapoli in New York; Editing by Shinjini Ganguli)