US: P&G profits rise but snack unit sours
Consumer goods giant Procter & Gamble said today (5 August) it had beaten its annual earnings target, although sales and earnings from its snacks and pet care division both fell.
P&G, the owner of brands like Gillette and Head & Shoulders, booked diluted earnings per share of US$4.26 - up 17% and higher than its guidance of $4.20 to $4.25.
Net sales fell 3% to $79bn, although on an organic basis, once acquisitions, disposals and foreign exchange is stripped from the numbers, sales rose 2%. Net earnings climbed 11% to $13.44bn.
However, P&G saw net earnings from its snacks and pet care businesses fall 10% to $234m thanks in part to "significantly higher" commodity costs. Earnings from continuing operations fell 5% to $388m. Sales were down 3% at $3.11bn.
Snacks volumes fell in the "high single-digits", the company said, due to "lower merchandising activity, reduced trade inventory levels and a high-base period", which included the launches of Rice Infusion, Extreme Flavors and Stix.
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