Posted: April 23, 2014
The Procter Gamble Company (PG) reported third quarter fiscal year 2014 core earnings per share of $1.04, an increase of 5% versus the prior year. On a currency-neutral basis, core earnings per share increased 17% for the quarter.
PG delivered organic sales growth of 3% for the quarter. Net sales were $20.6 billion, unchanged versus the prior year period, including a negative three percentage point impact from foreign exchange.
“PG’s third quarter results came in as we had expected. This leaves us on track to deliver our top- and bottom-line growth objectives for the fiscal year,” said chairman, president and CEO A.G. Lafley. “We’re operating in a slow-growth, highly competitive environment, which places even greater importance on strong innovation and productivity improvement. We’re delivering meaningful product innovations that are attracting more consumers to our brands. We’re making good progress on our productivity plans, with cost savings and enrollment reductions ahead of going-in targets for the year. We’re confident that the cumulative benefits from these innovations and productivity improvements will lead, over time, to improved value creation for consumers, customers and shareholders.”
Beauty segment organic sales increased 2% and organic volume growth increased 1% from innovation in hair care, deodorants and personal cleansing, and market growth. This was partially offset by a sales decrease in salon professional and skin care primarily in Asia. Overall volume for beauty for the quarter was unchanged and net sales were down 2%.
Grooming segment organic sales increased 1% and organic volume increased 2% due to higher pricing and innovation on blades and razors and appliances, which was partially offset by geographic and product mix and market contraction in developed regions. Overall, net sales for grooming for the quarter were down 4%.
For its fiscal year 2014 guidance, PG continues to expect organic sales growth of 3–4%. All-in sales growth is expected to be approximately 1%, including a negative foreign exchange impact of 2–3%. Core earnings per share are expected to grow 3–5% for the fiscal year, and reported earnings per share are expected to grow in the range of 1–4%.