As U.S. consumers built up a supply of household staples such as cough medicine and laundry detergent amid the spread of the coronavirus, Procter & Gamble registered its largest sales increase in the U.S. in many years. Heightened demand in the company’s home market more than counterbalanced sharp drops in China, a country where closures presented an obstacle to production and held consumers back from buying, The Wall Street Journal reported.
The consumer products firm indicated that organic sales increased 6 percent for the quarter. In the United States, sales increased 10 percent while they dropped 8 percent in China. The company noted that the rush of consumers to build a supply powered much of the rise. Even so, the company’s executives foresee that higher use of household products such as dishwashing soap, cold medicine and laundry detergent will remain following the pandemic.
P&G is the first large household staples maker to make its financial results for Q1 2020 known. During that time, the pandemic severely impacted China and proliferated in the United States.
Its net sales for the quarter were higher 5 percent compared to the year before at $17.2 billion. In addition, diluted net earnings per share marked an 8 percent rise from the year before, arriving at $1.12. Core earnings per share rose 10 percent and registered at $1.17.
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The company kept its net earnings per share and organic sales guidance, while it reduced estimates for revenue growth due to the impact of currency changes that were worse than projected.
As previously reported, the shopping habits of American consumers are offering a reflection on how the coronavirus pandemic continues to change and impact daily life. Hair clippers and hair coloring products were in high demand after hand sanitizer, disinfectants and toilet paper were popular in the first stage of panic buying.
Consumers bought puzzles, games and other entertainment products beyond education after purchasing consumable items and food per a past report.