P&G’s 2Q Profit Up 22%, Led by Beauty-Care Sales

The Procter & Gamble Co.’s fiscal second quarter profit jumped 22%, thanks to lower manufacturing costs and a 50% surge in sales at its beauty care business, according to executives.

P&G also reported net income of $1.82 billion for the quarter ended Dec. 31, up from $1.49 billion last year, which included $98 million in restructuring charges. Net sales jumped 20% to $13.22 billion from $11.01 billion a year earlier. Excluding acquisitions, divestitures and favorable foreign-currency exchanges, the company said organic sales grew 6%.

Beauty care sales benefited from double-digit gains in Pantene and Herbal Essences hair care products as well as Olay skin care products. Sales at the unit soared to $4.49 billion, and total volume increased 45%, primarily from the September acquisition of German hair care company Wella AG.

Sales at the fabric and home care unit, which includes Tide and Gain detergents, grew 10% to $3.41 billion. Baby and family care sales rose 6% to $ 2.67 billion, and health care sales increased 22% to $1.91 billion. P&G said performance was particularly strong in developing markets and across its health care product line, which benefited from an unexpected, early and severe cold and flu season in North America.

Looking ahead, P&G said it expects total sales to increase 14-18% for the third quarter ending March 31. The company expects acquisitions, primarily Wella, to add 7-9% to sales growth. For the fiscal year ending June 30, the company said it expects sales to increase 13-17%.