Consumer goods group the Procter & Gamble Company today (27 January) announced earnings per share for the October – December quarter of US$0.72, largely flat with the same period last year. Net earnings increased 29% to $2.55bn driven largely by the addition of Gillette.


P&G’s organic sales increased 8% behind broad-based increases across all business units and geographies. Organic sales exclude the impact of acquisitions, divestitures, and foreign exchange. Reported net sales, which include the addition of the Gillette business, increased 27%.


“Growth momentum on P&G and Gillette continues to be strong,” said chairman of the board, president and chief executive A.G. Lafley. “Excellent topline growth enabled us to exceed earnings expectations in what we anticipate to be the most difficult cost quarter of the fiscal year. This quarter’s results, a robust innovation pipeline, and good progress on the Gillette integration, give us the confidence to raise the earnings outlook for the fiscal year.”


In a statement P&G said that snacks and coffee results continued to be impacted by Hurricane Katrina. Volume grew 3%, as a mid-single digit decline in coffee volume partially offset growth in other businesses. Snacks volume was up mid-single digits.  Sales were $927m, an increase of 10%. 


“Pricing actions taken in the prior year in response to rising coffee prices added 9 percent to sales.  Unfavorable mix and foreign exchange each had a negative one percent impact on sales,” the company said.


Earnings from snacks and coffee declined 20% to $95m, as sales growth was offset by increased costs related to Hurricane Katrina and negative product mix.