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Net Sales Down for P&G for the Quarter

Posted: August 1, 2014

The Procter & Gamble Company (P&G) reported fiscal year 2014 core earnings per share of $4.22, an increase of 5% versus the prior year. Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 14%. Diluted net earnings per share were $4.01, an increase of 4%. Organic sales grew 3% driven by 3% unit volume growth. Net sales were $83.1 billion, an increase of 1% versus the prior year, including a negative two percentage point impact from foreign exchange.

For the April–June 2014 quarter, core earnings per share were $0.95, an increase of 20% versus the prior year period. Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 25%. Diluted net earnings per share were $0.89, an increase of 39% percent. Organic sales grew 2%, including a two percentage point benefit from pricing. Shipment volume was in-line with prior year levels. Net sales were $20.2 billion, a decrease of 1% versus the prior year period, including a negative two percentage point impact from foreign exchange and a modest negative impact from minor divestitures.

“P&G delivered top and bottom line commitments for the fiscal year,” said chairman, president and CEO A.G. Lafley. “We met our objectives in a very difficult operating environment, delivered strong constant currency earnings growth, and built on our strong track record of cash returns to shareholders. Still, we have more work to do to deliver the profitable sales growth and strong cash productivity we are capable of delivering. We will discuss our going-forward strategy and plans to further strengthen our results during our earnings call this morning.”

The beauty segment organic sales were flat with gains from market growth and product and commercial innovation in hair care, deodorants and personal cleansing offset by sales decreases in salon professional and skin care from competitive activity and market contraction.

The grooming segment organic sales increased 3% due to higher pricing and innovation on blades and razors and appliances, which was partially offset by negative geographic and product mix from disproportionate growth in developing markets and disposables. The health care segment organic sales increased 2% due to growth in oral care from innovation, geographic market expansion and market growth, and in personal health care, where innovation and market expansion more than offset a lower cough and cold season.

The baby, feminine and family care segment organic sales increased 4%. Baby care sales were up behind global product innovation and market growth in the developing regions while feminine care sales grew due to developing market growth and product innovation. Family care sales increased behind product innovation, partially offset by competitive activity.

For its fiscal year 2015 guidance, P&G expects organic sales growth in the low-to-mid single digit range in fiscal year 2015, and net sales growth is expected to be in the low single-digit range, including a negative one point impact from foreign exchange.

Additional information these financial results form P&G is available here.