Sluggish Q3 for P&G

The Procter & Gamble Company reported third quarter fiscal year 2017 net sales of $15.6 billion, a decrease of one percent versus the prior year. Organic sales increased one percent, according to the CPG giant, noting that organic sales increased in four of five business segments.

“The third quarter macro environment was characterized by a slowdown in market growth, continued geopolitical disruptions and foreign exchange challenges,” said David Taylor, chairman, president and CEO. “Against this backdrop, we delivered modest organic sales growth and double-digit Core EPS growth, and we increased the quarterly dividend for the 61st consecutive year. Looking forward, we are maintaining our organic sales and Core EPS guidance ranges for the year and increasing our outlook for adjusted free cash flow productivity.”

Net sales in the third quarter were down one percent versus prior year, including a negative two percent impact from foreign exchange.  Pricing and mix had no net impact on sales for the quarter. All-in volume was unchanged including the impacts of minor brand divestitures, according to the firm.

Beauty segment organic sales increased one percent versus year ago behind growth in skin and personal care. Organic sales increased low single digits in skin and personal care as the continued growth of the super-premium SK-II skin care brand offset lower volume in retail skin care. Organic sales in hair care were unchanged.

Grooming segment organic sales decreased six percent due to lower volume and reduced pricing in shave care. This sector’s organic sales decreased high single digits globally due to competitive impacts in the US. Organic sales were up high single digits in appliances driven by the continued success of innovation on Braun male shavers as well as styling tools.

Health Care segment organic sales increased six percent behind higher organic volume in both oral care and personal health care. Product innovation on power toothbrushes and continued marketing support drove a low single-digit increase in organic sales in oral care while personal health care was up double digits due to market growth in the US behind a strong cough and cold season along with increased pricing outside the US, the firm reported.

P&G’s fabric and home care segment organic sales increased one percent versus year ago driven by higher organic volume in both fabric care and home care along with increased pricing in fabric care. Home care organic sales decreased low single digits as increased volume due to product innovation and increased customer support was more than offset by unfavorable geographic mix. Fabric care organic sales increased low single digits due to increased organic volume and favorable product mix from premium forms in developed markets and increased pricing in developing markets.

Baby, feminine and family care segment organic sales increased one percent.