Agreement on another strong quarter for P&G
fiscal first quarter, as financial analysts back up the positive
outlook ahead of results being published later today.
On September 5, the company backed its financial outlook for the quarter, stating that the financial forecast for the period should see sales grow by 23 per cent to 27 per cent, indicating quarterly sales of $18.19 billion to $18.78.
Wall Streets analysts have backed this prediction, with most plumping for the higher end of P&G's own forecasts. Of 17 analysts surveyed by Thomson Financial, average revenue forecasts were said to be in the region of $18.56bn.
"Recent product launches - Crest Pro Health and Olay Definity - and expansion - Fusion in Europe, Olay into white space geographies - should help boost the top line," Lehman Brothers analyst Lauren R. Lieberman wrote in a recent client note.
But most of the growth is down to the $57m purchase of Gillette, which was approved in October last year. Since then the gradual integration of the businesses has been going ahead, with synergies helping to add to the bottom line and the added sales volume pushing up sales growth.
It is no wonder, considering that the purchase of Gillette has now made P&G the world's largest consumer goods company.
As a result of all of this, this financial year is expected to see the company further extend that lead on the market, as the launch of new products continue, further cost savings kick in and sales margins continue to improve.
As a result of this P&G predictions made at the company's AGM earlier this month to deliver up to $1.2bn in pretax annual cost saving and around $750m in revenue growth three years after the Gillette acquisition look set to become a reality.
