What's going on?

Procter & Gamble (P&G) reported better-than-expected quarterly results on Wednesday, after a few of its signature heroes showed just how well they scrub up.

What does this mean?

Shoppers might’ve been under the weather last quarter, but P&G was fighting fit. The company�s cold and flu products flew off the shelves, which helped its healthcare segment � home to brands like Oral-B and Vicks � make 13% more in sales last quarter than the same time last year. And sales in P&G�s fabric and homecare segment � the firm�s biggest � were up 7% too, after folk stocked up on cleaning products like Tide detergent and Mr Clean during an Omicron spike.

Altogether, P&G�s organic sales � which strip out the impact of currency swings and acquisitions � were 10% higher last quarter than the same time last year, marking the company�s biggest quarterly gain in 20 years. P&G upped its full-year revenue growth outlook too, and investors sent its shares up after the news.

Why should I care?

For markets: P&G, no matter what.
There�s another reason investors are keen on P&G: as a consumer staples company, it can raise prices without losing customers ��a handy tool when costs are on the rise. Case in point: P&G increased its average product price by 5% last quarter, yet still sold 3% more. That �pricing power� could be why an index tracking some of America�s biggest consumer staples companies has outperformed the US market by 10% this year. And what�s more, research shows the sector has outperformed the wider market by 15-20% during uncertain economic times over the last 20 years (tweet this).

Zooming out: There�s money in yogurt.
P&G isn�t the only consumer staples company raking it in: Danone reported on Wednesday that last quarter�s sales were up 7% versus the same time last year � its fastest sales growth since 2014. The French firm said its price hikes drove the boost, along with strong demand for essentials like baby products and bottled water.