Procter & Gamble and Coca-Cola reported higher quarterly profits Tuesday, lifted by premium consumer items at Procter and new beverage offerings at Coca-Cola. P&G, whose brands include Bounty paper towel and Crest toothpaste, reported profits of $2.7 billion in its fiscal third-quarter, up 9.3 percent from the year-ago period.
Revenues rose 1.1 percent to $16.5 billion. P&G scored a solid five percent increase in "organic" sales, which strips out foreign exchange effects and divestitures. The company pointed to strength in higher-end cosmetics, toothpaste and detergent, among other items. This group of products includes "Tide Pods," which combine a traditional detergent with stain removers and brighteners.
P&G typically boosts prices when it introduces premium products, lifting profits. However, Chief Financial Officer Jon Moeller said the company was also focusing on better basic-level products in shaving and baby care, which have been weak spots at P&G in the recent period. "We're doing very well at the high end, but we need to do better at the low end," Moeller said on a conference call with reporters.
Coca-Cola, meanwhile, reported first-quarter profits of $1.7 billion, up 22.7 percent. Revenues climbed 5.2 percent to $8.0 billion. Sparkling beverage volumes grew one percent, boosted by an especially strong performance by the recently-revamped Coca-Cola Zero Sugar, a diet cola.
The soda giant also pointed to a successful launch of its Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar. Revenues got a small lift from Brexit because of additional sales in anticipation of a possible "hard" Brexit that was averted when the European Union granted Britain an extension to permit more time to negotiate the terms of its divorce.
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