25-Jan-2013

P&G Q2 core net earnings up 12%

Core net earnings for Procter & Gamble (P&G) increased by 12% in the October-December quarter, the company has announced. In addition, organic sales rose 3% while core operating profit increased by 7% for the quarter.

Results were slightly more muted in the company’s Beauty Segment where net sales rose 1%, driven by innovation and pricing. Net sales dipped in skin care because of competitive activity. They also decreased in Salon Professional as a result of the negative impact of foreign exchange and market softness.

In the Grooming Segment, blades and razors increased compared to the prior year thanks to higher pricing and growth in the US, driven by strengthened marketing and in-store plans were partially offset by the negative impact from foreign exchange. Overall, however, sales for the segment decreased (by 4%) due to the divestiture of the household appliances business and negative foreign exchange.

Oral Care net sales grew behind new innovation, market expansion and higher pricing, partially offset exchange.

“Our second quarter results were at the high end of our expectations on the top line and ahead of forecast on operating profit, earnings per share and cash flow,” said Chairman, President and CEO Bob McDonald. “Our strong first half results have enabled us to raise our sales, earnings and share repurchase outlook for the fiscal year, while we strengthen investments in our innovation and marketing programmes.”

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