P&G beat profit estimates

NEW YORK: Procter & Gamble Co reported first-quarter profit that beat estimates and sales that unexpectedly rose on Friday, thanks to robust demand for its beauty and cleaning products, helping it stave off rivalry from cheaper store-branded products.

Organic sales, which exclude revenue from newly acquired units, enjoyed growth of 4 percent, the best in five years.

Sales surged 5 percent in P&G´s beauty business, driven by its premium skin care brands SK-II and Olay.

The grooming business, including Gillette shaving products, surged 5 percent in volume, boosted by product innovation and price cuts.

Shares in the company, which makes Pampers diapers and Tide detergent, jumped 4.8 percent in premarket trading.

The stock has fallen 13 percent this year, underperforming the broader consumer products index.

P&G and its rivals have been rocked this year by surging input costs and the foreign exchange impact of a strong dollar. Fierce competition between retailers and changing consumer habits have also made it harder for consumer companies to lift sales, forcing them to raise prices in some categories.

P&G´s challenges relating to commodities, transportation and foreign exchange have increased in the past quarter, Chief Financial Officer Jon Moeller said on a call with journalists.