Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

P&G Profit Tops Estimates As Taylor’s Cost Cuts Gather Steam

Procter & Gamble Co., the world’s largest consumer-products company, posted first-quarter profits that topped analysts’ estimates, helped by lower costs and a slimmer stable of brands.

Profit was $1.03 a share, excluding some items, Cincinnati-based P&G said in a recent statement. Analysts had estimated 98 cents, on average. Revenue was little changed, at $16.5 billion, roughly matching analysts’ projections.

The results show that chief executive officer David Taylor is making progress on the $10 billion cost-cutting programme on which he embarked after taking the helm last year. P&G also completed the divestiture of more than 40 beauty brands to Coty, Inc. this month – a sale orchestrated by Taylor’s predecessor – allowing P&G to focus on reinvigorating its main household and personal-care businesses.

The shares rose 2.3% to $86 at 7.34 a.m. in early trading in New York. The stock gained 5.9% this year through Monday.

P&G also showed some signs of improvement on the demand side, with organic sales – a measure that excludes the effects of currency exchange-rate fluctuations, as well as acquisitions and divestitures – rising in all of the company’s units.

Sales by that measure advanced 3% in the grooming business, which includes Gillette shaving products. Organic sales climbed 3% in the beauty unit, which sells Pantene shampoo and Olay skincare products. The health-care division, the maker of Crest toothpaste and Prilosec heartburn medicine, had the biggest organic sales increase, at 7%.

P&G maintained its forecasts that organic sales would grow about 2% and adjusted earnings would increase at a mid-single-digit percentage rate in its current fiscal year.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days