Procter & Gamble Co. (PG) Tops Q3 EPS by 2c; Guides FY14
Procter & Gamble Co. (NYSE: PG) reported Q3 EPS of $1.04, $0.02 better than the analyst estimate of $1.02. Revenue for the quarter came in at $20.56 billion versus the consensus estimate of $20.68 billion.
January – March Quarter Discussion
All-in net sales were unchanged versus the prior year at $20.6 billion in the January – March quarter, including a negative three percentage point impact from foreign exchange. Organic sales grew three percent. Organic sales were at or above year ago levels in each reporting segment. Volume grew three percent. Pricing increased sales by one percent with higher pricing in each reporting segment, and unfavorable geographic and product mix decreased sales by one percent.
| Foreign | Net | Organic | Organic | ||||||||||||||||
| Volume | Exchange | Price | Mix | Sales | Volume | Sales | |||||||||||||
| Beauty | 0% | -3% | 1% | 0% | -2% | 1% | 2% | ||||||||||||
| Grooming | 2% | -5% | 3% | -4% | -4% | 2% | 1% | ||||||||||||
| Health Care | 2% | -2% | 1% | -3% | -2% | 2% | 0% | ||||||||||||
| Fabric Care and Home Care | 6% | -4% | 1% | -1% | 2% | 6% | 6% | ||||||||||||
| Baby, Feminine and Family Care | 0% | -4% | 2% | 0% | -2% | 0% | 2% | ||||||||||||
| Total P&G | 3% | -3% | 1% | -1% | 0% | 3% | 3% |
- Beauty segment organic sales increased two percent from innovation in Hair Care, Deodorants, and Personal Cleansing, and market growth. This was partially offset by a sales decrease in Salon Professional and Skin Care primarily in Asia.
- Grooming segment organic sales increased one percent due to higher pricing and innovation on Blades & Razors and Appliances, which was partially offset by geographic and product mix and market contraction in developed regions.
- Health Care segment organic sales were unchanged. Growth in Oral Care sales from innovation, geographic market expansion and market growth was offset by decreases in Personal Health Care due to lower cold and flu incidents and in Pet Care primarily behind the continuing impacts from product recalls in the previous fiscal year.
- Fabric Care and Home Care segment organic sales increased six percent with growth across each business. Fabric Care was up behind new innovation, developing market growth, higher pricing and initial innovation shipments. Home Care and Personal Power sales grew behind innovation and market expansion in developing regions, and Personal Power and Professional increased sales due to distribution expansion.
- Baby, Feminine and Family Care segment organic sales increased two percent. Baby Care sales were up behind product innovation and market growth in the developing regions. Feminine Care sales grew due to developing market growth and value interventions in North America. Family Care sales declined due to competitive promotional activity.
Fiscal Year 2014 Guidance
The Company continues to expect organic sales growth of three percent to four percent. All-in sales growth is expected to be approximately one percent, including a negative foreign exchange impact of two to three percent. Core earnings per share are expected to grow three percent to five percent for the fiscal year, and reported earnings per share are expected to grow in the range of one percent to four percent.
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