Procter & Gamble shares up after strong earnings

• The consumer products giant, whose brands include Tide detergent and Old Spice deodorant, reported profits of $3.6 billion in the first quarter of fiscal 2020.
• The company now forecasts sales growth of three to five percent in fiscal 2020, a steep change from a few years ago when it struggled to lift sales.

NEW YORK: Procter & Gamble reported a jump in quarterly earnings Tuesday, benefitting from strong sales of premium toothpaste and other high-end products and price increases in other categories.

The consumer products giant, whose brands include Tide detergent and Old Spice deodorant, reported profits of $3.6 billion in the first quarter of fiscal 2020, a jump of 12.3 percent from the year-ago period.

Sales increased 6.6 percent to $18 billion.

Shares surged following the report, which topped analyst estimates and led P&G to boost full-year forecasts.

The company now forecasts sales growth of three to five percent in fiscal 2020, a steep change from a few years ago when it struggled to lift sales.

P&G notched higher sales in most product divisions, with the biggest increases in health care and beauty.

The company cited strong sales of premium toothpaste and new toothbrush products, as well as of "super-premium" SK-II cosmetics and China Olay.

Several categories benefited from price increases, in some cases implemented after currency devaluations.

"We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results," said Chief Executive David Taylor.

Shares rose 4.5 percent to $124.35 in pre-market trading.