The Procter & Gamble Company reported first quarter (July to September 2013) earnings per share of $1.04, up eight percent versus the prior year. Net sales were $21.2 billion, an increase of two percent, including a negative two percent impact from foreign exchange.
“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. 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,” said Chairman, President, and Chief Executive Officer A.G. Lafley.
The company, whose local product range from Pampers diapers to Ariel detergent and Gillette razors, earlier stated that it will focus on value creation, productivity, operation discipline and strategic investments in order to make the company significantly profitable in the 2014 fiscal year.
In Africa which makes 15% of P&G’s net sales, P&G has been focusing on introducing new products while offering competitive prices to the growing market.
Overall, the net sales increased two percent to $21.2 billion in the July – September quarter, including a negative two percentage point impact from foreign exchange. Organic sales grew four percent. Organic sales were in-line or higher versus the prior year in all reporting segments. Organic volume also grew four percent. Pricing was unchanged versus the prior year.
P&G’s Baby, Feminine and Family Care segment where Pampers and Always fall under recorded 6% increase in due to product innovation in North America on Baby Care and Family Care, as well as strong Baby Care market growth in developing regions.
The grooming segment which includes Gillette blades and razors organic sales increased its organic sales by 1% due to higher pricing and innovation on Blades & Razors and Appliances, which were partially offset by unit volume market contraction in developed regions.
Fabric Care and Home Care segment (Ariel is in this category) organic sales increased 6% with strong growth in each product category. This is evidenced in the region where in Uganda Ariel is the market leader and is a few points behind the market leader in Kenya. Personal Power grew mid-single-digits driven by new distribution for Duracell batteries.
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.
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