Procter & Gamble reported a better-than-expected quarterly profit, helped by cost-cutting and strong demand for its baby, feminine and home care products. Jeanne Yurman reports.
Strong demand for baby, feminine, and home care products plus solid cost cutting helped Procter & Gamble end the quarter with a profit that surpassed Wall Street expectations. The world's second largest consumer products company has been selling off money losing brands and focusing on core brands such as Tide, Pampers and Gillette to jump-start sluggish sales. Erin Lash, analyst at Morningstar. (SOUNDBITE) ERIN LASH, CFA, SENIOR EQUITY ANALYST, CONSUMER PACKAGED GOODS, MORNINGSTAR, (ENGLISH) SAYING: "Not only we think that that will fuel further top line growth, but will also take complexity out of the business and enable them free up more funds to further reinvest behind their brands than what they have been able to do up to this point." P&G sold 41 of its brands, including Clairol and Wella, to Coty in a $12.5 billion deal earlier this month. It is planning to further cut costs and save as much as $10 billion over the next five years. It aims to reinvest a big chunk of those savings in new products and packaging, research and development, and growing sales.