P&G Gets No Charge From Batteries

Procter & Gamble said its first quarter results met expectations, as reported sales were flat at $20.8 billion and core earnings rose 2%.

“P&G’s first quarter results were in-line with our expectations, despite a very difficult operating environment,” said chairman, president and chief executive officer A.G. Lafley. “This keeps us on-track to deliver our fiscal year commitments.”

By category, beauty, hair, and personal care segment organic sales were unchanged as pricing benefits from prior year increases across all business units were offset by lower volume in prestige. Grooming segment organic sales were unchanged as higher pricing and innovation on blades and razors and higher volume in appliances from innovation were offset by lower blades & razors volume in developed regions. Health care segment organic sales increased 6% behind innovation-driven volume growth in oral care and personal health care along with higher pricing in oral care.

Fabric care and home care segment organic sales were flat, but baby, feminine and family care segment organic sales increased 4% behind pricing, primarily in baby care, and positive sales mix, driven mainly by feminine care.

Last month P&G said it would exit the battery market and sold its Duracell business to Berkshire Hathaway in a deal valued at $4.7 billion. But P&G won’t stash any cash from the transaction; instead, P&G will execute a split transaction, in which it will exchange a recapitalized Duracell Company for Berkshire Hathaway’s shares of P&G stock.