P&G sales continue to boom, but investors disappointed

Likewise, profits for the third quarter rose by 14 per cent compared to the same period last year to $2.51bn, but the jump in both sales and profits did not encourage investors, as the news had a negative effect on share prices.

Chief executive A.G. Lafley confirmed that the increase in sales had been driven by the company's leading brands, whereas synergies and 'cost disciplines' had helped to increase profits.

"Sales growth was at the top-end of our long term target range in a very competitive environment.

These results give us confidence to improve our EPS outlook for the fiscal year," said Lafley.

Sales growth was particularly helped along by the Head & Shoulders and Olay brands, whereas on a geographical basis developing markets continued to set the pace with double-digit sales growth.

However, the company said that the results were negatively impacted by product mix as well as charges relating to the voluntary recall of certain Iams and Euanuba pet foods in March.

Overall beauty sales increased by 8 per cent to $5.6bn during the quarter, led by increases in skin care, feminine care, hair care and prestigious fragrances, which all reported double digit growth.

The SK-II skin care line, which was seriously hit by a health scare in Asia last year, was said to be back on track, with sales described as continuing to recover.

Baby care and family care grew by 10 per cent to reach $3.27, on the back of strong double digit growth for baby care in developing regions.

In the Gillette division net sales in blades and razors rose 8 per cent to reach $1.28bn, emphasized by high teen growth for Mach 3 in developing markets.

Looking ahead the company said it should be able to meet or exceed long-term targets, estimating that organic sales should grow by 5 - 6 per cent, whereas foreign exchange is expected to positively impact sales by two per cent, giving rise to total sales growth of 11 to 12 per cent.