The Procter & Gamble Company (P&G) reported first quarter fiscal year 2014 net sales rose 2% to $21.2 billion.
“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 Chairman, President, and Chief Executive Officer 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.”
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.
Grooming segment organic sales also increased 1% due to higher pricing and innovation on Blades & Razors and Appliances, which were partially offset by unit volume market contraction in developed regions.
Health Care segment organic sales were in line with the prior year, as an increase in Personal Health Care was offset by a decrease in Pet Care. Segment earnings were down versus the prior year due to the impact of the Natura recalls and Oral Care geographic expansion investments.
Fabric Care and Home Care segment organic sales increased 6% with strong growth in each product category. Baby, Feminine and Family Care segment organic sales increased 6% behind product innovation in North America on Baby Care and Family Care, as well as strong Baby Care market growth in developing regions.
P&G reiterated its fiscal year 2014 guidance. The company continues to expect organic sales growth of 3-4%, it said in the report.