4/26/2016, 1:35 PM (Source: TeleTrader)
more TeleTrader news

P&G third fiscal quarter sales decline 7%, EPS $0.97

The Procter & Gamble Company reported the third quarter fiscal year results, with net sales falling as much as 7% to $15.76 billion in comparison to the same period a year ago. Earnings per diluted share were $0.97, which is an increase of 29%, on net income of $2.75 billion. This compares to net income of $2.15 billion, or $0.75 per share a year ago. The core earnings per share fell 3% to $0.86, according to the earnings release published on Tuesday.

While a part of underperformance in the quarter can be attributed to negative currency moves, there were visible declines in net sales across company's sectors. Most notable was drop of 10% in grooming, and 8% fall in beauty products. Organic sales grew one per cent: Baby, Feminine and Family Care segment organic sales were unchanged.

"We achieved a significant milestone this quarter in the transformation of the product portfolio with the sale of the Duracell business. We delivered another strong quarter of productivity improvement and cost savings, and we increased investments in innovation, advertising and selling to enhance our long-term prospects for faster, sustainable top-line growth and value creation."

P&G gave a guidance for the rest of financial year, maintaining outlook for organic sales growth of in-line to up low-single digits versus fiscal 2015. P&G said it "expects all-in sales to be down high-single digits in fiscal 2016, including a negative six to seven percentage point impact from foreign exchange and a two to three percentage point drag from the combined impacts of the Venezuela deconsolidation and minor brand divestitures."

The Cincinnati, Ohio-based cosmetics giant, known for Head & Shoulders, Gillette, Pampers and Oral-B brands among others, has seen its sales declining for the last seven quarters. The company also reported lower cost of goods sold, down by 11% to $7.92 billion, and it raised prices by 1% in the third quarter that ended on March 31.

P&G shares last traded up 0.57% at $81.41 on Monday. The stock was almost flat for the year, adding 0.51%, but added 2.52% year to date.


Image: Beta/AP

Baha Breaking the News (BBN) / ZR