P&G reports higher sales but lower profits

AFP, NEW YORK: Procter & Gamble reported higher quarterly sales yesterday behind strength in some health and beauty products, but earnings tumbled in part due to one-time costs connected to US tax reform.

Net income in the second quarter ending December 31 dropped 68 per cent to $2.5 billion, in part due to a large-one time gain from a divestiture in the year-ago period.

Revenues rose three per cent to $17.4 billion.

The earnings are the first since P&G appointed activist investor Nelson Peltz to the board after a long and bruising proxy battle.

There was broad-based strength in P&G’s beauty category, with Pantene and Head & Shoulders among the brands that sold well, along with premium skin-care offerings under Ski-II.

P&G also did well in

health, boosted by premium electric Oral-B toothbrush products and sales of remedies to address an “early and intense Cough/Cold season” in the US.

But P&G suffered another weak quarter in grooming, due in part to continued weakness in shaving  products after P&G’s Gillette brand cut prices to compete with other companies. Sales in this category fell one per cent from the year-ago period.

 

P&G reports higher sales but lower profits

AFP, NEW YORK: Procter Gamble reported higher quarterly sales yesterday behind strength in some health and beauty products, but earnings tumbled in part due to one-time costs connected to US tax reform. Net income in the second quarter ending December 31 dropped 68 per cent to $2.5 billion, in part due to a large-one time gain from a divestiture in the year-ago period. Revenues rose three per cent to $17.4 billion. The earnings are the first since PG appointed activist investor Nelson Peltz to the board after a long and bruising proxy battle. There was broad-based strength in PGs beauty category, with Pantene and Head Shoulders among the brands that sold well, along with premium skin-care offerings under Ski-II. PG also did well in health, boosted by premium electric Oral-B toothbrush products and sales of remedies to address an early and intense Cough/Cold season in the US. But PG suffered another weak quarter in grooming, due in part to continued weakness in shaving products after PGs Gillette brand cut prices to compete with other companies. Sales in this category fell one per cent from the year-ago period.