Procter & Gamble’s sales grew in the first quarter and the consumer products company expects a milder effect from tariffs this fiscal year.

The company, known for Crest toothpaste and Pantene shampoo, said sales rose 3%, to $22.39 billion, ahead of analysts’ forecasts for $22.18 billion, according to FactSet.

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Organic sales edged up 2% due to higher pricing and a more favorable mix, with growth in the company’s beauty, grooming and healthcare segments.

P&G now expects tariffs to add about $400 million to its annual costs after taxes, cutting its prior estimate of $800 million in half. The company also halved its commodity cost outlook to $100 million from $200 million. Both estimates are after tax.

Looking ahead, P&G continues to forecast sales growth of 1% to 5% and for net earnings per share to climb 3% to 9% for the fiscal year, which ends June 30.

Chief Executive Jon Moeller said P&G is on track to deliver within those ranges despite a challenging consumer and geopolitical environment. The company is increasing its investment in innovation and marketing to boost value and growth, he added.

For the third quarter, the Cincinnati company logged a profit of $4.75 billion, or $1.95 a share, compared with $3.96 billion, or $1.61 a share, a year earlier. The increase was primarily driven by higher noncore restructuring charges in the year-ago quarter, the company said.

Adjusted earnings per share were $1.99. Analysts polled by FactSet expected $1.90 a share.

P&G said organic sales in its beauty segment grew by 6%, helped by new hair-care and personal-care products at higher prices. Organic sales rose 3% in its grooming unit due to new products at higher price points and volume growth, and ticked up 1% in its healthcare segment due to higher prices.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

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