AGI
The pandemic changes consumption. Sales boom for Procter & Gamble
AGI – Procter & Gamble, the US giant of consumer products, from Gilette razors to Pampers diapers, announces an 8% increase in sales in the quarter ended December 31 and focuses on a series of new high-end products, from expensive dish soaps to $ 300 toothbrushes, detergent pods designed for extra-large washing machines. According to P&G, consumers are increasingly willing to pay more for quality products at this stage. The change, according to P&G, is because consumers, stranded at home by the coronavirus pandemic, are willing to spend more to keep their homes and themselves clean. This is demonstrated by the figures for the fourth quarter, with revenues growing by 8% to 19.8 billion dollars, against the expected 19.9 billion. In addition, the company raised its estimates for organic sales growth for the full year to between 5% and 6%, from the previous range of 4% to 5%. P&G then announces a quarterly net profit of $ 3.9 billion, equal to $ 1.47 per share, compared to $ 1.41 a year ago and the expected $ 1.48. The most significant increase was recorded in the sale of products for laundry, house washing and dishes (+ 12%), driven by the greater stay of people at home during the pandemic. Health products follow (+ 9%) with a sharp increase in sales of toothpastes and toothbrushes. Instead, products to assist the respiratory tract, especially the Vicks brand, have decreased in the last year due to a lower spread of coughs, colds and seasonal flu. Sales of beauty products and children’s hygiene products increased by 6%. Sales boom of toilet paper and other household cleaning paper products. The increase in hours spent at home, notes the CFO of the company Jon Moeller, has also caused the products for shaving, men’s skin care and deodorants to grow rather unexpectedly. Growth accelerated especially in North America, the Middle East and Africa. “To the extent that the widespread introduction of the vaccine changes these trends,” Moeller explained, “there will likely be a reduction in demand for some categories, but there should be a significant increase in demand for other categories.”
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