(Reuters) – Procter & Gamble beat second-quarter earnings estimates on Wednesday, driven by growing demand for its household goods such as Pantene shampoo and Tide detergent, as product innovations at all price points helped attract more American customers.
Shares of the company, considered a bellwether for the consumer goods sector, rose nearly 3% in premarket trading.
P&G has doubled down on investments in innovation and launched affordable products such as Olay Melts and Tide Evo to attract lower-income shoppers, following a decline in customer demand due to repeated price hikes.
The company has also tried to revamp its marketing and influencer roster on fast-growing Chinese shopping app Douyin in recent months, which has helped its Pantene shampoo lead hair care growth on the platform, people said. leaders in November.
P&G reported a 2% increase in overall organic volumes in the second quarter, while average prices across its product categories remained stable.
The company has managed to gain market share in the United States, which accounts for almost half of P&G’s total sales, according to analysts, thanks mainly to new launches such as Luvs Platinum Protection.
P&G sells its products at prices ranging from $5 to $60 in certain categories.
The company has also started to see some demand concerns for beauty brand SK-II in China, following several quarters of declining sales due to growing anti-Japanese sentiment.
However, P&G maintained its annual forecast as growth in China remains below previous records due to weak consumer trends.
The company’s second-quarter net sales reached $21.88 billion, up from $21.44 billion a year earlier. Analysts were expecting $21.54 billion, according to LSEG data.
It earned $1.88 per share, beating estimates of $1.86.
(Reporting by Ananya Mariam Rajesh in Bangalore; Editing by Shinjini Ganguli)
