The Rising Influence of Rising Affluence

[DewDiligence]

PG logs impressive FY3Q19 growth:

https://www.wsj.com/articles/procter-gambles-sales-rise-on-higher-pricing-strength-in-beauty-products-11556019857

The maker of Tide detergent and Gillette razors said Tuesday that organic sales—a closely watched metric that strips out currency moves, acquisitions and divestitures—rose 5% in the fiscal third quarter. It is the third quarter of solid sales gains for P&G, which for years had been struggling with tepid growth… Organic sales for P&G were boosted by 2% due to higher pricing and 2% due to organic shipment volumes compared with a year ago. The mix] of products also helped organic sales by 1%. [I.e. 2% + 2% + 1% = 5%.]

…Beauty products fueled the gains, with organic sales rising 9%…

…P&G raised its organic-sales guidance for the full year. It now expects organic sales to be up a solid 4%, compared with its previous forecast in January of between 2% and 4%.

The 3% decline in the stock today looks like “sell on news” in the aftermath of a strong run-up.