Procter & Gamble Co (NYSE:PG) posted its earnings for the first quarter above consensus forecast. The company is also anticipating growth in organic sales in the second quarter, as its turnaround efforts have started paying off.
The consumer goods company has been reducing its portfolio to focus more on profitable brands like Pampers diapers, Tide detergent and Gillette shaving products.
P&G shares jumped nearly 3 percent in the current trading session following a stronger quarterly profit.
However, the company reported its worst revenue decline in seven quarter and slashed its sales growth outlook for the full year, as demand dropped further in a number of product categories, and sales in the overseas markets were hurt by a strong dollar.
Looking forward, the company is now anticipating sales to drop in high single digit percent for the full year, as compared to its previous forecast in low to mid-single digit percent, as the impact from a strong dollar was anticipated to be higher. P&G generates about two-thirds of its sales from the markets outside North America.
The company said that revenue in all of its five product categories plummeted in double-digit percentage terms in the latest quarter, as beauty, grooming and baby care products recorded the worst decline.
P&G posted earnings of $2.60 billion, or 91 cents a share for the first quarter, up 31 percent from the same period last year, helped by cost cutting measures and accounting changes associated to Venezuela operations. On adjusted basis, the company earned 98 cents a share.
Revenue for the quarter came in at $16.53 billion, down 12 percent from the same period, one year ago. Analysts surveyed by Thomson Reuters I/B/E/S were looking for a profit of 95 cents a share on $17.17 billion in revenue.
