Procter & Gamble Outlines Product Growth Strategy
Reports positive first-quarter earnings
CINCINNATI -- The Procter & Gamble Co. will continue "to focus on executing our growth and productivity strategy" on the heels of reporting it held or grew market share in businesses representing over 45% of sales in the July through September quarter.
"Our first quarter results put us on track to deliver our commitments for the fiscal year. Results were at the high end of expectations on the top line and ahead of plan on operating profit, earnings per share and cash,” said chairman, president and CEO Bob McDonald in a quarterly earnings report.
Company focus now includes "maintaining momentum in developing markets, strengthening our core developed market business, building a strong innovation pipeline, and aggressively driving cost savings and productivity improvements. We’re confident that this strategy will enable P&G to generate superior levels of shareholder return in both the short- and long-term.”
Highlights of P&G's quarter included:
- Organic sales increased 2% for the quarter at the top end of the guidance range.
- Organic sales growth was broad-based, with four of five business segments increasing organic sales.
- Core net earnings per share increased by 5% to $1.06.
- Core gross margin increased 80 basis points due to the impact of higher pricing and manufacturing cost savings, partially offset by unfavorable geographic and product mix. Reported gross margin, including restructuring, increased 30 basis points.
- Core selling, general and administrative expenses as a percentage of net sales decreased 10 basis points. Including incremental restructuring and other non-core charges, reported SG&A increased 90 basis points.
- Core operating profit increased 1%. Reported operating profit, including non-core charges, decreased 7%.
- Operating cash flow was $2.8 billion for the quarter. The company repurchased $2.6 billion of shares during the quarter and returned $1.6 billion of cash to shareholders as dividends.
P&G is a global, publicly traded Fortune 500 company, and the largest consumer packaged goods company in the world. Its brands include Pampers, Tide, Ariel, Always, Pantene, Bounty, Pringles, Charmin, Downy, Iams, Crest and Olay.