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P&G Beats Trimmed Expectations Amid Gillette Write-Down

By John F. Heerdink, Jr.

The Procter & Gamble Company (PG) released its quarterly earnings ending June 30 on Tuesday this week. Cincinnati-based consumer goods giant confirmed that it performed well enough to exceed Wall Street expectations even after the company had to bear $8 billion charges for its popular Gillette shaving business. After this write-down led to a net loss $5.24 billion in comparison to a net income of $1.89 billion, or 72 cents per share a year earlier.

A recent change in consumer behavior along with currency fluctuations led to a shrinking market for razors, gels, and foams worldwide. Reportedly, net sales in the grooming business are reported to have declined in 11 out of the last 12 quarters. In order to tackle the sluggish market and competition with rivals, recently P&G launched a razor named SkinGuard for men with sensitive skin as a step to invest in new products and to keep its grip on the market share.

Reportedly, excluding items, the company reported $1.10 earnings per share beating analysts’ expectation of $1.05. Price hike and Olay beauty products raised organic sales by 3% and 7% respectively. P&G’s beauty business grew 8% and sales home care unit including Tide detergent and Febreze air fresheners grew by 10%.

The Procter & Gamble Company (PG), a Dow 30 component,  supplies branded consumer packaged goods to consumers across the globe.  To learn more about Procter & Gamble (PG) and to continue to track its progress please visit the Vista Partners Procter & Gamble Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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P&G posts strong sales takes $8 billion Gillette writedown

P&G reported a net loss of about $5.24 billion, or $2.12 per share, for the quarter ended June 30, due to an $8 billion non-cash write-down of Gillette. For the same period last year, P&G’s net income was $1.89 billion, or 72 cents per share. Cincinnati-based P&G, which operates in 80 countries,..


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