Profits rise at Procter & Gamble

Strong sales of consumer products have lifted Procter & Gambles profits

Profits have risen at US consumer goods giant Procter & Gamble as its beauty, fabric care and other products prove resilient to the spending downturn.

P&G owns over 250 brands, including Pringles crisps, Crest toothpaste, Max Factor make up and Pampers nappies.

In the three months to June, particularly strong sales of the group's beauty and healthcare products helped lift earnings to $1.09 billion (£69m), or 77 cents a share, against expectations of about 75 cents a share.

The company said the benefits of cost-cutting and restructuring programmes had helped boost results.

P&G said on Monday the company had also met its own internal growth target a year ahead of schedule.

The news contrasts starkly with two years ago, when over-ambitious forecasting forced the group to issue three profit warnings in succession.

Durk Jager, the company's chief executive at the time, resigned.

P&G's current chief executive Alan Lafley attributed the success to "our focused strategies of improving consumer value, investing behind core brands and driving costs to the bottom line".

The group bought the Clairol make up business last year, which is helping to grow sales.