Procter & Gamble has today reported a better-than-expected quarterly profit, helped by cost-cutting and strong demand for its baby, feminine and home care products. 

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.

It 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. 

Net sales remained largely flat at $16.52 billion in the first quarter ended September 30, but beat the average estimate of $16.49 billion, according to Thomson Reuters I/B/E/S. 

Sales in the UK P&G's largest European market, fell 2% 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 UK 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.