The Procter & Gamble Company reported fourth quarter fiscal year 2019 net sales of $17.1 billion, an increase of 4% versus the prior year. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 7%, driven by a 3% increase in organic volume. 

For fiscal year 2019, the company reported net sales of $67.7 billion, an increase of 1% versus the prior year. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 5%, driven by a 2% increase in organic volume. 

“We met or exceeded each of our going-in core targets for sales, profit and cash in fiscal 2019,” said David Taylor, chairman, president and CEO. “We built sales, market share and profit margin momentum throughout the year, ending with our strongest quarter of organic sales growth in well over a decade. Looking ahead, we will continue to focus on superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver sustainable, balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.”

Net sales in the fourth quarter of fiscal year 2019 were $17.1 billion, up four percent versus the prior year. Unfavorable foreign exchange was a four percent hurt to sales for the quarter, according to P&G. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased seven percent driven by a three percent increase in organic shipment volume. Increased pricing added three percentage points to organic sales. Positive mix impact was a two percent help to organic sales due to strong growth in developed markets and disproportionate organic growth of the premium SK-II brand and P&G’s “Personal Health Care” category, which includes its oral care business.

Beauty segment organic sales increased 7% versus year ago. Skin and personal care organic sales increased mid-teens driven by market growth, innovation, positive product mix from the disproportionate growth of the super-premium SK-II brand and Olay Skin Care and increased pricing. Hair Care organic sales increased low single digits due to innovation and devaluation-driven price increases.

Grooming segment organic sales increased 4%. Shave care organic sales increased low single digits as positive geographic mix help from the growth of developed regions and the benefit of devaluation-driven price increases were partially offset by related unit volume declines and market contraction in certain regions. P&G said appliances organic sales increased double digits due to premium innovation, positive mix help from the disproportionate growth of developed regions and increased pricing.

 P&G’s Health Care segment organic sales increased 10%. Oral care organic sales increased high single digits driven by premium innovation, positive mix from the disproportionate growth of developed regions and premium power brush and paste products and increased pricing. Personal Health care organic sales increased mid-teens due to innovation, a late season increase in cough and cold incidents and favorable mix due to the disproportionate growth of developed regions and respiratory products which have higher than category-average selling prices.

Fabric and Home Care segment organic sales increased 10%. Fabric care organic sales increased double digits driven by innovation, market growth, devaluation-related pricing and positive mix due to the disproportionate growth of premium products.

P&G’s Baby, Feminine and Family Care segment organic sales increased five percent. 

Fiscal year 2019 net sales were $67.7 billion, an increase of one percent versus the prior year. Excluding the impact of foreign exchange, acquisitions and divestitures, organic sales increased five percent on a two percent increase in organic volume. Diluted net earnings per share were $1.43, a decrease of 61% versus the prior year, primarily due to the charges to reduce the Gillette Shave Care carrying value in fiscal 2019. This impact was partially offset by early debt extinguishment and U.S. tax reform charges in the base period. Core earnings per share were $4.52, an increase of seven percent driven by the increase in net sales and lower effective tax rates. Excluding the impact of foreign currency, currency-neutral core earnings per share increased 15%.

During the April-June 2019 quarter, P&G took a non-cash, after-tax charge of $8 billion to adjust U.S. dollar carrying values of goodwill and trade name intangible assets in the Gillette Shave Care business. The charge is a non-core EPS adjustment of $3.02 in the quarter and $3.03 in fiscal year 2019, said P&G. The impairment was due primarily to significant currency devaluations that have occurred since carrying values were initially established nearly 14 years ago in 2005. The shave care business has also been negatively impacted by market contraction of blades and razors, primarily in developed markets, due to lower shaving frequency, and competitive activities. P&G said the shave care business has consistently generated significant earnings and cash flow and continues to be a strategic business with attractive earnings, cash flow and growth opportunities.

P&G said it expects fiscal year 2020 all-in sales growth in the range of 3-4% ersus the prior fiscal year. The estimate includes a modest negative impact from foreign exchange, which is largely offset by a positive net impact from acquisitions and divestitures.
The company expects organic sales growth in the range of three to four percent.