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P&G beats sales forecast, raises outlook on resurgent demand for cleaning products -Breaking

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© Reuters. FILE PHOTO: The logo for Procter & Gamble Co. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid

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(Reuters) -Procter & Gamble Co beat quarterly sales estimates on Wednesday, as the consumer goods giant benefited from higher prices and resurgent demand for cleaning products due to a spike in COVID-19 infections.

P&G’s shares rose 1.8% in premarket trading after the company also raised its full-year organic sales forecast to a range of 4-5% from 2-4% earlier.

P&G said sales in fabric & home care unit, the company’s biggest segment and home to brands such as Tide and Mr. Clean, rose 7% in its second quarter, as the rapid spread of the Omicron coronavirus variant since late last year led to consumers stocking up again on detergents and surface cleaning products.

Net sales increased 6% to $20.95 Billion, which was also helped last year by the price hikes that were implemented to compensate for higher freight and commodity costs. Refinitiv’s IBES data shows that analysts expected to see sales in the range of $20.34 billion.

P&G said it now expects a hit of about $2.8 billion related to commodity and freight costs this fiscal year, compared with a prior forecast of about $2.3 billion.

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