It didn't take long for Procter & Gamble (NYSE:PG) to abandon its conservative fiscal 2021 outlook. The consumer staples giant on Tuesday raised its guidance after sales jumped in Q1, which runs through late September.
Organic sales rose 9% in that period, marking an acceleration over the prior quarter's 6% increase. Gains came from each of its core product divisions, but the laundry care and healthcare divisions were standout performers. Executives noted continued strong demand for products like Tide detergent and the Surface cleaning brand as consumers prioritized home cleaning spending.
P&G's growth was led by higher sales volumes, but average prices also rose. "We delivered another strong quarter of organic sales growth, core earnings per share, and cash returned to shareholders," CEO David Taylor said in a press release.
Looking ahead, management now sees organic growth landing between 4% and 5% this year rather than the 2% to 4% range it expected just three months ago. Hitting that target would suggest essentially steady gains from 2020 to 2021 and only a modest slowdown from pandemic-influenced growth rates that caused spiking sales in recent months. P&G also raised its outlook for earnings and cash returns to shareholders this year.