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POST TIME: 24 January, 2018 00:00 00 AM
P&G reports higher sales but lower profits
AFP

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.