Procter & Gamble shares soar as sales rise amid Covid-19 panic buying
The US-based consumer goods company has seen quarterly sales increase by 5% as consumers stockpile essentials amid lockdowns aimed at curbing the spread of the coronavirus.
Procter & Gamble (P&G) recorded a 5% increase in quarterly sales on Friday, which has sent its shares soaring in early morning trading.
The rise in the company’s third quarter (Q3) revenues comes as consumers stockpile everything from hand sanitiser to snacks amid government-imposed lockdowns aimed at limiting the spread of Covid-19.
‘The strong results we delivered this quarter are a direct reflection of the integral role our products play in meeting the daily health, hygiene and cleaning needs of consumers around the world,’ P&G Chairman, President and CEO David Taylor said in a statement.
‘Our organization has been doing a terrific job against our near-term priorities – protecting the health and safety of each other, maximizing availability of P&G products to meet heightened consumer need and helping society meet and overcome the challenges of this crisis.’
Procter & Gamble Q3 earnings: key figures
P&G reported net sales of $17.2 billion in Q3 2020, with core earnings per share increasing 10% to $1.17, according to its latest financial results.
Operating cash flow was $4.1 billion for the quarter, with free cash flow productivity of 113%.
P&G returned $2.8 billion of cash to shareholders through $1.9 billion in dividend payments and $900 million of common stock repurchases in the third quarter.
Over the last 10 years, P&G has returned over $120 billion to shareholders in cash dividends and stock repurchase.
Earlier this week, P&G also announced a 6% increase in its quarterly dividend.
How to trade stocks with IG
Looking to trade Procter & Gamble and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:
Create an IG Trading Account or log in to your existing account
Enter ‘Procter & Gamble’ in the search bar and select it
Choose your position size
Click on ‘buy’ or ‘sell’ in the deal ticket
Confirm the trade
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
- Forex
- Shares
- Indices
