Toothpaste adds a shine to P&G

Toothpaste and the osteoporosis treatment drug Actonel have boosted profits at consumer products maker Procter & Gamble.

The company, which also makes Pringles crisps and Pampers nappies, said its profits in the third quarter rose by nearly a quarter to $1.27bn (£800m).

The Cincinnati-based company, which makes 300 consumer products ranging from health care to food products, said its sales rose 8% to $10.7bn.

P&G said revenues were lifted by strong sales of drugs such as Actonel while products such as Crest toothpaste and Crest Whitestrips also sold well.

But, at the same time, the consumer products giant said it was faced with fierce competition in many areas.

Hair care

It said it had increased spending to defend market share of its Folgers brand coffee, while strong competition from Colgate-Palmolive's tooth whitening kit Simply White meant P&G had to cut the prices for its Crest Whitestrips.

P&G also found itself engaged in a struggle for market share in the nappy market with Kimberly-Clark's Huggies brand.

"P&G really wants to continue to put up solid volume growth and the way to do that in this market right now is with pricing," said Joseph Altobello, analyst at CIBC World Markets.

The consumer products maker also spent $66m on restructuring the business in the past three months.

P&G said it was still going ahead with its bid for German hair care group Wella, increasing its offer for the company in an attempt to overcome reluctant investors.