Household staples sales exceed expectations, driving Procter & Gamble earnings growth.

• Wall Street's estimates for Procter & Gamble's quarterly earnings and revenue were surpassed by the company.
• In the fiscal second quarter, the company experienced a 1% increase in volume due to the rise in demand for household staples such as toilet paper and cleaning products.
• P&G reiterated its fiscal 2025 forecast.

On Wednesday, the company reported quarterly earnings and revenue that surpassed analysts' expectations due to the increasing demand for household essentials such as toilet paper and laundry products.

Shares of the company rose 3% in premarket trading.

According to a survey of analysts by LSEG, the company's quarterly report for the period ending December 31 deviated from Wall Street's expectations.

• Earnings per share: $1.88 vs. $1.86 expected
• Revenue: $21.88 billion vs. $21.54 billion expected

P&G's fiscal second-quarter net income increased to $4.63 billion, or $1.88 per share, from $3.47 billion, or $1.40 per share, in the previous year.

The company's organic revenue increased by 3% to $21.88 billion, while net sales rose by 2%.

During the period, P&G's volume increased by 1%. However, the metric does not include pricing, making it a more precise indicator of demand. P&G, like many consumer companies, has experienced weaker demand for its products following several years of price increases.

The feminine and family care division of P&G's baby reported the highest increase in volume, with a 4% jump. However, the sales of baby care organic products, including Pampers diapers, decreased by low-single digits, as fewer parents purchased them.

In the quarter, P&G's grooming segment, which includes Gillette razors, experienced a 2% increase in volume due to innovation.

The fabric and home care division of the company experienced a 1% increase in volume, with Tide, Swiffer, and Cascade products being part of the segment.

The health care segment of P&G, comprising Pepto Bismol and Oral-B products, experienced no growth in volume.

Despite P&G's overall growth, its beauty division experienced a 1% decline in volume for the quarter. This was due to a decline in hair care products in the Greater China market and a decrease in global volume for its skin care segment, which includes Olay products.

P&G maintained its fiscal 2025 forecast, predicting core net earnings per share between $6.91 and $7.05, and revenue growth of 2% to 4%.