Procter & Gamble (NYSE:PG) earnings showed mixed results on Wednesday, posting a 5% per share increase at $1.04. Revenue was $20.6 billion, on par with the year before.
Continue Reading Below
Organic sales grew by 3%, seeing 6% growth in the fabric and home care category. Organic grooming and health care products saw a 2% increase in volume.
Yet increased costs from foreign exchange rates led to a 3% decline. In particular, changes in Argentina and Venezuela rates resulted in added costs.
The company notes obstacles in the consumer industries. “We’re operating in a slow-growth, highly competitive environment, which places even greater importance on strong innovation and productivity improvement,” said Chairman, President and Chief Executive Officer A.G. Lafley. “We’re making good progress on our productivity plans, with cost savings and enrollment reductions ahead of going-in targets for the year.”
P&G announced the sale of its pet food brands this month. IAMs, Eukanuba and Natura will be sold to Mars for $2.9 billion. The transaction is expected to be completed later this year.
The company's beauty and grooming lines include billion-dollar brands like Pantene, Olay and Gillette. Crest and Oral-B are amongst its healthcare lines.
Procter & Gamble also owns family care and home care brands like Tide, Downy and Duracell. Paper products include Bounty, Charmin and Pampers.
The company’s stock price was flat in recent trade, hovering around $80 per share.