P&G's Sales Rise, Helped by Slimmer Beauty Portfolio
January 23 2018 - 8:32AM
Dow Jones News
By Imani Moise
Procter & Gamble Co. said its sales and adjusted earnings
grew in the most recent quarter as the company tries to refresh its
staple brands.
The company, which makes Tide laundry products, Dawn dish soap
and Charmin tissue, also raised the high end of it annual earnings
per share outlook by a percentage point due to the newly enacted
tax legislation.
Overall the company reported a net benefit of $135 million from
a reduced tax rate and a net charge of $628 million for
repatriating its overseas profits.
Organic sales, a closely watched metric that strips out currency
moves, acquisitions and divestitures, rose 2%.
P&G's decision to streamline its beauty business by selling
the bulk of it to Coty Inc. in 2016 helped organic sales in the
segment to jump 9% -- the largest margin among company segments --
during the quarter. The company said revamped products in the
health-care business helped grow sales 4%. Organic sales in the
grooming segment fell 3% as the company cut prices to compete with
newer upstarts in the shaving market.
In recent quarters the consumer giant has said it was puzzled by
sluggish consumer spending on household staples like paper towels
and shampoo and has been trying to spiff up its products to spur
sales.
P&G has also been trying to curb a dangerous social-media
trend in which teens consume highly toxic Tide Pods detergent
product for likes and shares. Concerns over Tide Pods, small packs
of concentrated liquid detergent, have pestered the company since
their launch in 2012, but the recent viral videos have sounded
fresh alarm bells.
In all for its second quarter the Cincinnati-based company
reported earnings of $2.5 billion, or 93 cents a share, down from a
profit of $7.88 billion, or $2.88 a share, a year earlier. The
prior year's quarter included a benefit from a divestiture. On an
adjusted basis, earnings rose 10% to $1.19 per share.
Revenue rose 3.2% to $17.4 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.14 a share on $17.39 billion in sales.
Shares edged 1.3% lower to $90.66 during premarket trading. The
stock has risen 5.7% over the past 12 months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
January 23, 2018 08:17 ET (13:17 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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