Investing.com - Procter & Gamble (NYSE:PG) will pay more out to shareholders this year than it previously thought, after reporting strong sales growth in its fiscal second quarter on Wednesday, boosted by increased demand for home cleaning products during the pandemic.
The consumer giant raised its outlook for fiscal 2021 all-in sales growth from a range of 3%-4% to a range of 5%-6% versus the prior fiscal year. It also expects to pay approximately $8 billion in dividends in fiscal 2021, and now plans to return around $18 billion of cash to shareowners in this fiscal year, up from the previous forecast of up to $10 billion.
P&G announced earnings per share of $1.64, an increase of 15% versus the prior year, on revenue of $19.75 billion, up 8% from a year earlier.
Its stock traded 1.5% higher premarket, having risen 6.6% in the past 12 months.
“We delivered another strong quarter of results across all key measures – top line, bottom line and cash,” said David Taylor, Chairman, President and Chief Executive Officer. “We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture. These strategies enabled us to build strong business momentum before the COVID crisis, accelerated our progress in calendar year 2020 and remain the right strategies to deliver balanced growth and value creation over the long term.”
The consumer goods giant has been one of the beneficiaries of the pandemic, and has continued to attract consumers as Covid-19 cases climbed in recent months. These second quarter numbers have benefited from the disproportionate growth of the higher-priced Home Care and Appliances categories and the North America region.
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