P&G Earnings Rise Amid Stockpiling Of Consumer Staples

Higher sales for consumer staples in Europe and the United States boosted Procter & Gamble's quarterly results, the company said Friday, offsetting weakness in Asia due to COVID-19 disruptions.

P&G, whose brands include Charmin toilet paper and Mr. Clean soaps, reported a six percent rise in its fiscal third-quarter profits to $2.9 billion.

Revenues climbed five percent to $17.2 billion.

While government shutdowns to combat the virus have battered some industries such as travel and restaurants, the makers of consumer goods have been seen as potential winners amid customer stockpiling and a keener interest in cleanliness.

P&G, which raised its dividend earlier this week, cited especially strong sales gains in personal health care and fabric and home care; the latter category includes cleaning products such as Comet soap and Cascade dishwashing detergent.

But the company also cited a drag from the coronavirus in China and other key Asian markets, where retail operations were disrupted. P&G suffered a double-digit revenue decline in the super-premium SK-II beauty products, a driver of earnings in past quarters.

"The strong results we delivered this quarter are a direct reflection of the integral role our products play in meeting the daily health, hygiene and cleaning needs of consumers around the world," said P&G Chief Executive David Taylor.

Shares rose 1.4 percent in pre-market trading to $123.19.