P&G registered a decline in net sales of 3% in Q4 2016, compared with the same quarter in 2015. As a result, total net sales reached $16.1bn.
The drop was put down to ongoing negative impact from the deconsolidation of the company’s operations in Venezuela in 2015 and the sale of minor brands.
Foreign exchange also hit P&G negatively by three percentage points.
Core EPS were seen to fall 15% due to increased marketing investments, lower gains from minor brand sales and a higher core effective tax rate compared with Q4 2015.
Referencing the recent Coty deal, P&G acknowledged that the exact earnings gain from the transaction will not be known until the transfer of its 41 beauty brands are completed (October 2016).
'Period of progress'
David Taylor
David Taylor, Chairman, President and CEO, said: “The fourth quarter was another period of progress driving P&G’s results to a balance of strong top-line growth, bottom-line growth and cash generation.
“Looking forward, we’re committed to continued productivity improvement and cost savings that provide the fuel for innovation and investments needed to accelerate and sustain faster top-line growth.
“We expect fiscal 2017 to mark another significant step toward our goal of balanced growth and value creation and total shareholder return in the top third of our competitive peer group.”
Beauty & grooming boost
In the company’s beauty segment, organic sales grew 1% from April-June compared with the same period in the prior year. The reason behind this uplift was pricing benefits and higher organic volume, the company noted.
Premium brand SK-II saw organic sales grow, although this was offset by lower sales of Olay.
Meanwhile, organic sales of P&G’s hair care brands remained unchanged versus the prior-year quarter.
Despite growth registered by Pantene and Head & Shoulders, declines in organic sales of other brands, which the company did not name, caused this category to remain flat.
The grooming segment performed well, with organic sales rising 7%. Noticeable growth was observed in developing markets driven by Fusion FlexBall innovation expansion.
Braun was also picked out, with organic sales of the shaving brand growing due to innovation-driven volume increases.
