The Procter & Gamble Company (P&G) reported third quarter fiscal year 2014 sales remained unchanged at $20.6 billion. Net income rose 2% to $2.61 billion.
“P&G’s third quarter results came in as we had expected. This leaves us on track to deliver our top- and bottom-line growth objectives for the fiscal year,” said chairman, president and CEO A.G. Lafley. “We’re operating in a slow-growth, highly competitive environment, which places even greater importance on strong innovation and productivity improvement.”
According to Lafley, P&G is delivering meaningful product innovations that are attracting more consumers to its brands. He told analysts that P&G is making good progress on its productivity plans, with cost savings and enrollment reductions ahead of going-in targets for the year.
“We’re confident that the cumulative benefits from these innovations and productivity improvements will lead, over time, to improved value creation for consumers, customers and shareholders,” he added.
Beauty segment organic sales increased 2% from innovation in hair care, deodorants and personal cleansing. This was partially offset by a sales decrease in salon professional and skin care primarily in Asia.
Growth in oral care sales from innovation, geographic market expansion and market growth was offset by decreases in personal health care. Fabric care and home care segment organic sales increased 6% with growth across each business.
The company continues to expect organic sales growth of 3-4%.