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The Procter & Gamble Company reported its second quarter fiscal year 2014 net sales of $22.3 billion, unchanged versus the prior year period, including a negative three percentage point impact from foreign exchange. Organic sales grew 3% while diluted net earnings per share were $1.18, a decrease of 15% versus a base period that included a $0.21 per share holding gain resulting from P&G’s purchase of the balance of its baby care and feminine care joint venture in Iberia. Core earnings per share were $1.21, a decrease of 1% versus the prior year. On a currency-neutral basis, core earnings per share increased 8% for the quarter.
“P&G’s second quarter results came in as we expected,” said P&G chairman, president and CEO A.G. Lafley. “We’re on-track to deliver our objectives of 3–4% organic sales growth and 5–7% core EPS growth for the fiscal year. We expect strong earnings growth in the second half of the fiscal year driven by solid top-line growth, moderating headwinds from foreign exchange, and productivity savings that build throughout the year.”
for the October–December 2013 time period, net sales were unchanged versus the prior year at $22.3 billion in the October–December quarter. Organic sales were at or ahead of prior year levels in each reporting segment, and volume grew 3%. Also, pricing increased sales by 1%, and unfavorable geographic and product mix decreased sales by 1%.
In beauty, P&G saw volume increase 15 but foreign exchange down -2%. Price was unchanged, and net sales dipped 2%. However, organic sales were unchanged. Gains were from market growth and innovation in the prestige, hair care, deodorant and personal cleansing segments, but those were offset by geographic and product mix and a decrease in skin care sales.
In grooming, volume was up 2 but foreign exchange down -3%. Price increased 3%, and net sales remained unchanged. Grooming organic sales increased 3% as higher pricing and innovation on blades and razors, as well as appliances, were partially offset by market contraction in developed regions and geographic and product mix.
For its fiscal year 2014 guidance, P&G reiterated its previous statements. The company continues to expect organic sales growth of 3–4%. 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 driven by solid top-line growth, moderating headwinds from foreign exchange, and productivity savings that build throughout the fiscal year.