Procter & Gamble Co (NYSE:PG, ETR:PRG) reported quarterly results on Friday that beat Wall Street estimates, lifted by continued strength in its premium Beauty segment even as demand for everyday staples like Fabric and Baby Care stalled.
The consumer goods giant posted fiscal first-quarter revenue of $22.39 billion, above analysts’ expectations of $22.17 billion, while core earnings per share rose 3% to $1.99, topping the $1.90 consensus estimate. Organic sales increased 2%, driven primarily by higher prices.
Operating cash flow came in at $5.4 billion, with the company returning $3.8 billion to shareholders during the quarter through $2.55 billion in dividends and $1.25 billion in share buybacks.
P&G maintained its full-year outlook, expecting sales growth of 1% to 5% and core EPS between $6.83 and $7.09, in line with last year’s $6.83.
The company said its cost-saving programs helped offset a $100 million commodity headwind and $400 million in tariffs, while benefiting from a $300 million foreign exchange tailwind.
While Beauty sales rose 6%, reflecting continued demand for premium products, P&G reported flat growth in its Fabric and Baby Care divisions, a sign that inflation-weary consumers remain selective in their spending. Volumes overall were flat, marking the low end of its guidance range.
P&G said its core operating margin remained flat year-over-year, reflecting strong productivity gains that offset cost pressures.
Shares of the company were up 3.2% in premarket trading following the results.