Procter & Gamble has raised its full-year sales guidance, as a strategy change in China in its Pampers business paid off, and demand at home in the US and in Latin America increased.

The world’s largest consumer goods company by market capitalisation now expects organic sales, which exclude the negative impact of currency moves and divestitures, to increase between 2 and 3 per cent for the fiscal year to June 2017, up from an earlier forecast of 2 per cent.

P&G has been revamping its Pampers business in China. It had underestimated demand for higher-end nappies and was losing share to Japanese rivals just as the economy there began to slow. Now that it has premium products in place and is making an ecommerce push, the sales decline is reversing.