P&G Q1 profit tops estimates | Progresiv
Procter & Gamble has reported better-than-expected profits for its fiscal first quarter, helped by its cost-cutting programme and strong demand in key product categories. 
For the three months to 30 September, net profit was up 4.3% to 2.71 billion dollars, and while reported sales were flat at 16.52 billion dollars, they rose by 3% on an organic basis, as did global volumes.
Reported results were hurt by currency fluctuations, particularly that of the pound, but on an organic basis, P&G reported sales and volume growth across all its categories. Beauty sales were up 3% with volumes growing 2%, Grooming was up 3% for both, Fabric & Home Care was up 4% for both, Health Care saw sales grow 7% on 5% volume growth, and the Baby, Feminine & Family Care unit recorded a 2% sales uptick on 4% volume growth.
CEO David Taylor said the results “mark a good start to the fiscal year”, adding that the group had also managed to deliver “strong cost savings”. P&G is looking to save up to 10 billion dollars in costs over the next five years, and CFO Jon Moeller said it will reinvest a significant chunk of that amount into R&D, product and packaging, and widening its sales network.
P&G reiterated its forecast for organic sales growth of approximately 2% for fiscal 2017, with reported sales expected to grow by 1%. It also maintained its expectation for core earnings per share growth by a mid-single digit percentage. (www.kamcity.com)
