It was steady as she goes at Procter & Gamble during the company’s first quarter as the nation’s largest consumer packaged goods company generated sales and profits that met expectations.
Sales increased 2% to $21.2 billion and net income increased 8% to slightly more than $3 billion, or $1.04 a share, from $2.8 billion, or 96 cents a share.
“P&G’s first quarter results were consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year,” said P&G chairman, president and CEO A.G. Lafley. “We have good market share momentum, a number of strong innovations coming to market over the balance of the year, and cost savings from productivity efforts that will continue to build. We remain focused on driving innovation and productivity. We continue to improve operating discipline and execution every day to create value for consumers and shareowners.”
The company stated that beauty segment organic sales increased 1% driven by innovation in hair care, deodorants, cosmetics and personal cleansing, coupled with market growth. This was partially offset by a decrease in skin care sales and unfavorable geographic and product mix.
Meanwhile, grooming segment organic sales increased 1% because of higher pricing and innovation on blades and razors and appliances, which were partially offset by unit volume market contraction in developed regions, P&G stated.
Looking to fiscal year 2014, P&G continues to expect organic sales growth of 3% to 4%. All-in sales growth is estimated in the range of 1% to 2%, including a negative foreign exchange impact of approximately 2%. Core earnings per share are expected to grow 5% to 7% for the fiscal year, and reported earnings per share are expected to grow in the range of 7% to 9%.