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.
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