The largest maker of consumer products in the world, Proctor & Gamble Co announced that its first quarter profits were up 7.6% as sales for its homecare goods and products for babies gained.
Net income for the quarter was $3.03 billion equivalent to $1.04 per share from last quarter’s $2.8 billion or 96 cents per share. Excluding some one-time items, the profit was $1.05 per share, which equaled the estimates of analysts.
A.G. Lafley the CEO is working on reducing costs and introducing new products since returning this past May to revive the growth at the makers of Crest toothpaste, Pampers diapers and Tide detergent.
The CEO has also cut prices on dome products and upped spending on marketing, which has helped to regain the ground on competitor Unilever in certain categories.
Some market share for the company has increased said one analyst. Over the last couple of years, P&G left some of its market share behind and is attempting to earn it back.
Sales were up 2.2% to end the quarter at $21.2 billion, while analysts had estimated sales would by $21.1 billion.
The forecast from the company was the same with earnings excluding certain charges for restructuring would be 5% to 7% higher this fiscal year.
In early trading on Friday morning, P&G stock was down to $80.49 a decline of less than 0.1%.
Lafely replaced Bob McDonald in May after P&G had lost customers in its key categories like beauty and detergents. During his first tenure of 2000 to 2009, the company acquired Gillette Co for $57 billion and added new products like Swiffer cleaner.
The company is now seeing the benefits of McDonald’s strategies including a focus on the United States and cost-cutting program of more than $10 billion that has freed up funds to help with research and marketing.
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