The company reported net sales growth of 9 percent to $21.6 billion for the three month quarter ending 31 December 2007.
Organic sales were up 5 percent for the quarter, in line with the company's expectations.
"This quarter is another demonstration of P&G's capability to deliver strong results in a difficult competitive and commodity cost environment" said CEO A.G. Lafley.
Although operating profit was up 8 per cent to $4.71bn reflecting sales increase, there was a slight decrease in operating margins due to higher commodity and energy costs.
In order to offset such costs the company will implement a number of price increases during the next quarter.
The company's predictions for 2008 remain positive with hopes for 4 - 6 percent growth in organic sales, which remains in line with the company's long-term target range.
However, the industry will be watching with interest the effect that price increases will have on the increasingly price conscious consumer.
Within the beauty segment net sales increased 10 percent to $5.1bn although favourable exchange rates had a six percent impact on the figures.
Organic sales within the sector grew by 5 percent during the quarter driven by strong growth in skin care and prestige fragrances.
In particular the company highlighted the continuing strong performance of the Hugo Boss and Dolce & Gabbana fragrances and the Olay Definity and Regenerist products.
At the same time as releasing the quarterly results the company announced the plan to separate its coffee business, creating an independent company The Folgers Coffee Company.
'This separation allows us to focus on our core businesses and the Folgers Coffee Company to further develop and leverage its brand portfolio in a coffee-specific business model," said Mr Lafley.
The details of the separation have not been decided and the transaction is not likely to go ahead before the second half of 2008.
The company states that a split-off transaction is most likely which would lead to a significant one-off gain for the parent company, thereby suggesting the possibility of further acquisitions by the company in the future.
