Procter & Gamble, the maker of Tide detergent and Pampers diapers, reported a better-than-expected quarterly profit, helped by cost-cutting and strong demand for its baby, feminine and home care products.
P&G's shares were up 3.4 percent at $87.00 in premarket trading on Tuesday.
The company has been selling off unprofitable brands and focusing on core brands such as Tide, Pampers and Gillette to revive sluggish sales. P&G sold 41 of its brands, including Clairol and Wella, to Coty in a $12.5 billion deal earlier this month.
P&G is also reducing costs through a plan to save as much as $10 billion over the next five years, after reducing the same amount in costs over the last five years.
The company plans to reinvest a significant portion of those savings in product and packaging improvement, research and development, and expanding sales coverage, P&G's Chief Financial Officer Jon Moeller said on a media call.
Net sales remained largely flat at $16.52 billion in the first quarter ended Sept. 30, but beat the average estimate of $16.49 billion, according to Thomson Reuters I/B/E/S.
Sales in the United Kingdom, P&G's largest European market, fell 2 percent in the quarter, Moeller said.
Britain's vote to leave the European Union has caused a plunge in the pound, leading consumer goods makers such as P&G's rival Unilever to attempt to raise prices in the market.
Moeller declined to discuss P&G's pricing strategy, but said the U.K. continued to be a "very challenging and highly promotional" market.
P&G said net income attributable to the company rose to $2.71 billion, or 96 cents per share, in the quarter, from $2.60 billion, or 91 cents per share, a year earlier.
Excluding items, P&G earned $1.03 per share from continuing operations, beating the average analyst estimate of 98 cents.
P&G's quarterly sales have been mostly falling for more than three years, as the company has been cutting its brand portfolio.