US: P&G posts disappointing quarterly results and names new CEO | Progresiv
Procter & Gamble has reported another drop in quarterly profits and sales, as it continues to restructure in an attempt to revive growth. The world’s largest FMCG maker said net profit for the fourth quarter (ending 30 June) was down 80% to 521 million dollars, hurt by a one-off charge related to its operations in Venezuela. Revenue, meanwhile, was down 9.2% to 17.8 billion dollars, the sixth straight quarter it has fallen. While P&G was hurt by the strength of the US dollar, underlying sales were up just 1%, intensifying calls by analysts and investors for the group to divest more brands. 
The group reported sales declines across all its divisions – Beauty, Hair & Personal Care fell by 10% (-5% underlying volume), Grooming was down 18% (-7% volume), Health Care declined by 6% (-3% volume), Fabric & Home Care was down 7% (+1% volume), and Baby, Feminine & Family Care was also down 7% (-4% volume). P&G said the decline in volumes offset a hike in product prices, even as some categories were hurt due to increased competition.
P&G launched a major revamp in 2014, saying it would focus on fewer, more profitable brands. Since then, it has sold off around 50 brands, while also reworking its executive team, including the appointment of company veteran David Taylor as its next CEO. (www.kamcity.com)
