Procter & Gamble Co raised its sales forecast for the year on Wednesday after quarterly results topped Wall Street expectations, boosted by price hikes and strong demand for premium fabric and skin care products. Premium products such as Gain or Downy fabric enhancer beads and SK-II skincare products boosted growth during the quarter, and helped P&G, the no. 1 personal care goods company, set itself apart from in-house supermarket brands that have been encroaching on market share.

Consumer goods companies have faced a string of challenges in the past year, including soaring commodities costs, a shortage of truck drivers, competition from supermarket brands and direct-to-consumer start-ups. Chief Financial Officer Jon Moeller said on a call to discuss earnings that steady results and confidence in global growth prompted the better forecast, but noted possible economic challenges such as trade, Brexit and the US government shutdown.

Quarterly organic sales rose 4 percent. Analysts on average were expecting growth of 2.4 percent, according to IBES data from Refinitiv.

Organic sales in P&G's beauty business rose 8 percent. Fabric and home care business, which includes brands such as Tide and Ariel, rose 2 percent to $5.56 billion. The business is P&G's biggest contributor to sales.

Excluding items, the company earned $1.25 per share in the second quarter ended December 31, beating analysts' estimate of $1.21 per share. Net sales rose marginally to $17.44 billion, beating analysts' average estimate of $17.15 billion, according to IBES data from Refinitiv.

Copyright Reuters, 2019