Scrub

P&G sees its shiniest growth in 15 years thanks to the "Hygiene Revolution"

Wednesday, October 21, 2020 by Robinhood Snacks |

Charmin, Crest, Vicks, and Tide... Your pandemic grocery list is also Procter & Gamble's pandemic winners list. The consumer goods giant had its biggest quarterly global sales increase in 15 years as we compulsively cleaned our homes (and ourselves).

  • Sales jumped 9%, and profit soared 20% compared to last year.
  • That's impressive growth for a 182-year-old company whose most exciting product is scented laundry beads.

It's the Hygiene Revolution... The pandemic has caused us to splurge on brand-name hygiene products instead of $15 craft cocktails and 2 a.m. Uber rides. People are spending more time at home, and they also have more money to spend on their home.

  • P&G's home-care sales jumped 30%, outsparkling every other unit. Swiffer, Febreze, and Mr. Clean were the sanitized stars of the earnings.
  • Lysol-maker Reckitt Benckiser just had its biggest quarterly sales growth ever thanks to its hygiene unit. It's also doing "hygiene consulting" for companies like Delta and Airbnb.
THE TAKEAWAY

The hygiene bar has been (permanently) raised... Hygiene isn’t just a corona-trend like sourdough starters and tie dye. Early in the pandemic, cleaning sales gains were driven by hoarding and shortages. But recent demand appears to be fueled by our sustained obsession with sanitizing — and big-brand names are benefiting over generics. P&G raised its financial forecast for the quarter since it's expecting growth to get shinier.