×

UPDATE 1-P&G delivers profit, sales beat amid activist pressure

(Adds details)

July 27 (Reuters) - Tide detergent and Gillette razors maker Procter & Gamble Co, which is under pressure from activist investor Nelson Peltz, reported another quarter of market-beating quarterly profit, helped by lower costs across the board.

The company's shares were up 1.4 percent at $90.55 in premarket trading on Thursday.

The company has been cutting costs and selling unprofitable brands to boost profits as sales remain stagnant.

Selling, general and administrative expenses fell 7 percent in the quarter.

Peltz said earlier this month he was seeking a seat on the company's board, making P&G the largest company ever to face a proxy fight. The investor cited his frustrations with the company's "suffocating bureaucracy" and its lagging stock price.

Net income attributable to the company rose to $2.22 billion, or 82 cents per share, in the three months ended June 30, from $1.95 billion, or 69 cents per share, a year earlier.

While net sales were flat at $16.08 billion, organic sales, which strip out the effect of acquisitions and fluctuating foreign exchange rates, rose 2 percent.

Organic sales were boosted by a 5 percent rise in sales in its beauty segment, which sells brands like SK-II and Olay, and fabric & home care segment, which sells brands like Febreze.

Excluding items, the company earned 85 cents per share.

Analysts on average were expecting 78 cents per share and revenue of $16.02 billion, according to Thomson Reuters I/B/E/S. (Reporting by Siddharth Cavale in Bengaluru; Editing by Martina D'Couto and Saumyadeb Chakrabarty)