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P&G profit up 37 percent on cost cuts, higher home care sales

Procter & Gamble, the world's largest household products maker, reported a 37 percent rise in quarterly profit as its cost cutting efforts paid off and organic sales rose in its home care business.

Shares of the maker of Pampers diapers and Tide detergent rose more than 2 percent before the bell.

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P&G has sought to cut expenses by streamlining management, lowering overhead and marketing costs, and cutting jobs under a five-year, $10 billion restructuring plan announced in February 2012.

The company's operating expenses fell 7 percent $6.28 billion in the fourth quarter ended June 30.

Procter & Gamble's Scope mouthwash
Daniel Acker | Bloomberg | Getty Images
Procter & Gamble's Scope mouthwash

Organic sales, which excludes the impact of divestitures and acquisitions, rose 1 percent in P&G's fabric care and home care division.

The business, which is the company's largest revenue contributor, sells products such as Febreze air freshener and Duracell batteries.

Total organic sales rose 2 percent, but currency headwinds wiped out the gains. Net sales fell 1 percent to $20.16 billion.

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Net profit attributable to the company rose to $2.58 billion, or 89 cents per share, from $1.88 billion, or 64 cents per share, a year earlier.

P&G's core earnings, which excludes one-time items, was 95 cents per share.

Analysts on average expected the company to earn 91 cents per share on revenue of $20.48 billion, according to Thomson Reuters I/B/E/S.

P&G's shares were up 2.2 percent at $78.99 in premarket trading on Friday. (Click here to get the latest quote.)

Wall Street had forecast Procter & Gamble would report earnings of 91 cents a share on $20.48 billion in revenue, according to a consensus estimate from Thomson Reuters.

The company currently has operations in about 70 countries worldwide and produces a wide range of consumer products. P&G's report comes a day after its competitor Colgate-Palmolive reported its net income excluding items rose 2 percent.

By Reuters. CNBC contributed to this report.