Procter & Gamble PG +1.40% reported strong results Tuesday because the pandemic continued to spice up gross sales of shopper staples, however its shares are priced for the growth to by no means finish.
The corporate on Tuesday unveiled gross sales and earnings that had been effectively forward of analyst expectations for the quarter by way of September. Natural gross sales—which strip out the consequences of forex fluctuations and acquisitions—rose 9% from a yr earlier, in contrast with 6% development within the earlier quarter.
As with U.K.-based Lysol maker Reckitt Benckiser —which reported outcomes earlier Tuesday— P&G PG 1.53% continues to learn from coronavirus-driven behavioral modifications. Gross sales had been strong throughout the board, however particularly so within the cloth and home-care section with 14% natural development. This division consists of manufacturers akin to Tide, Cascade, Swiffer and Mr. Clear.
P&G PG 1.53% is transferring to take additional benefit of the development, having already launched a brand new hand sanitizer below its skilled model Safegaurd and the brand new Microban 24 line of floor cleansers. On the similar time, classes that one may suppose would undergo within the stay-at-home financial system akin to Gillette are nonetheless doing effective: The grooming section grew natural gross sales by 6% within the quarter.
On a convention name with analysts, Chief Monetary Officer Jon Moeller predicted that some family behavioral shifts will show everlasting. “We do count on that there’s some stickiness to new habits which might be being shaped and new consciousness that’s being raised,” he stated. Drawing an analogy to the conduct of shoppers that lived by way of the Nice Despair, Mr. Moeller argued that even the extent of stock that households preserve for issues akin to Bounty paper towels is likely to be completely increased.