Lower sales in the shave care segment dampen P&G’s results in the first quarter
A special edition gift pack as part of P&G's
partnership with Warner Bros. Pictures’ film Justice League
P&G has reported a net sales increase of 1% to $16.7bn in the first quarter of fiscal 2018.
Organic sales also increased 1%, driven by a 1% increase in shipment volume.
David Taylor, Chairman, President and CEO, said: “First quarter sales and earnings results were in line with our going-in expectations and keep us on track to deliver our targets for the fiscal year.
“We delivered organic sales growth in a decelerating global market and against a relatively strong base period. Market share trends continue to improve, with more of our top brands and countries holding or growing share.
“Looking forward, we will drive innovation, productivity and organisation transformation to accelerate top-line growth while further expanding our industry-leading profit margins.”
In the beauty division, organic sales reported solid sales gains, up 5% compared with Q1 2017.
The skin and personal care segment saw organic sales grow by double digits, driven by sales in China where the uptake of super-premium brand SK-II continued.
Meanwhile, sales grew in the low single digits in hair care, primarily due to increased pricing across regions behind product innovation.
However, the grooming segment did not put in such a strong performance; lower sales in shave care resulted in organic sales dropping 6% for the division.
Grooming appliances offset this decline, with Braun’s male styling and mid-tier shavers helping the appliances business grow by double digits.
Falling under the health care segment, organic sales grew 1% for the quarter, with power toothbrushes and toothpastes providing a low single digit sales boost to the oral care segment.