The Procter & Gamble Company reported first quarter fiscal year 2014 diluted net earnings per share of $1.04, up 8% versus the prior year. Core earnings per share were $1.05, a decrease of 1% versus the prior year. On a currency-neutral basis, core earnings per share increased 8% for the quarter. Net sales were $21.2 billion, an increase of 2%, including a negative two percentage point impact from foreign exchange. Organic sales grew 4% for the quarter.
“P&G’s first quarter results were consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year,” said P&G chairman, president and CEO A.G. Lafley. “We have good market share momentum, a number of strong innovations coming to market over the balance of the year, and cost savings from productivity efforts that will continue to build. We remain focused on driving innovation and productivity. We continue to improve operating discipline and execution every day to create value for consumers and shareowners.”
The company's beauty segment saw organic sales increase 1% for the July–September 2013 quarter, driven by innovation in hair care, deodorants, cosmetics and personal cleansing, coupled with market growth. This was partially offset by a decrease in skin care sales and unfavorable geographic and product mix.
The grooming segment at P&G registered an organic sales increase of 1% due to higher pricing and innovation on blades and razors, and appliances, which were partially offset by unit volume market contraction in developed regions.
For its fiscal year 2014 guidance, P&G reiterated its commitment—the company continues to expect organic sales growth of 3–4%, and all-in sales growth is estimated in the range of 1–2%, including a negative foreign exchange impact of approximately 2%. Core earnings per share are expected to grow 5–7% for the fiscal year, and reported earnings per share are expected to grow in the range of 7–9%.
The company expects strong earnings growth in the second half of its fiscal year behind continued top-line growth, productivity savings that will continue to build throughout the year and more favorable foreign exchange base period comparisons. Click here for more details on P&G's July–September 2013 quarter financial results.