Profit jump lifts P&G to new high

P&G has high hopes for sales of new products like the Fusion razor

Procter & Gamble has thanked rising sales across all of its divisions for better-than-expected profits.

Profits at the consumer products giant jumped 29% to $2.55bn (£1.44bn), or 72 cents a share, in the three months to December from $1.98bn last year.

As well as strong sales, speedy integration of Gillette had helped boost earnings, P&G added.

The news helped drive shares in the firm to new highs of $59.75 on Wall Street in early trade.

In early afternoon trade shares in the group settled 1.2% higher at $59.50.

Strong products

"Growth momentum on P&G and Gillette continues to be strong," chairman, chief executive and president AG Lafley said.

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"Excellent topline growth enabled us to exceed earnings expectations in what we anticipate to be the most difficult cost quarter of the fiscal year.

"This quarter's results, a robust innovation pipeline and good progress on the Gillette integration give us the confidence to raise the earnings outlook for the fiscal year," Mr Lafley added.

The group took over razor and battery maker Gillette in October last year - a move that created the world's largest consumer products company - in a $57bn deal.

Upbeat outlook

Looking ahead, it expects new product launches - including the Gillette's newest razor the Fusion, which recently made its debut in the US - to continue to drive profits.

P&G has also recently changed its product formulas to include cheaper ingredients in an effort to keep a tight rein on raw material costs, and also plans to increase the price of some products - including Pampers nappies.

Looking ahead the group said that as a result of its strong performance it was raising its profit forecast for the financial year to June.

It now expects to bring in earnings of between $2.58 and $2.62 per share, compared to a previous target of $2.54 to $2.60.