• Take that, Bill Ackman! The Procter & Gamble Company (P&G) reported a 2% rise in net sales to $22.2 billion for its fiscal second quarter. The result was cheered on Wall Street, which sent share prices up more than 3% when it was announced last month and gave credence to the idea that the company’s strategy for a turnaround are underway. In recent months, P&G’s brass has come under fire from investors, principally Ackman of Pershing Capital, who were pushing for a management change and division of assets.
But P&G fought back in fiscal Q2, delivering broad-based organic sales growth, as all business segments increasing organic sales by 2% or more versus the prior year. P&G held or grew market share in businesses representing nearly 50% of sales in the quarter, as measured on a constant currency value basis. In the US market, P&G held or grew value share in businesses representing nearly 60% of sales.
“Our second quarter results were at the high end of our expectations on the top-line and well ahead of forecast on operating profit, earnings per share and cash flow,” said Chairman, President and Chief Executive Officer Bob McDonald. “Global market share trends improved as we continued to implement our growth strategy and made very good progress against our productivity and cost savings goals. ”
Beauty segment sales rose 1%, driven by innovation and higher pricing.
Fabric care sales increased 3%, driven by new product launches, positive pricing and product mix. Home care delivered higher net sales primarily due to volume growth from innovation and geographic expansion.
Health care rose 3%, as oral care net sales grew behind new innovation, market expansion and higher pricing, partially offset by negative foreign exchange.
For fiscal 2013, the company is increasing its organic sales growth guidance to a range of 3-4% for the fiscal year from a previous range of 2-4%.