US consumer goods giant Procter & Gamble, which owns the Pringles snacks and Folgers coffee brands, has reported higher sales and earnings for the first quarter.
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The company reported net earnings of US$2.03bn, or 77 cents per share, for the July to September quarter, compared to $1.94bn, or 70 cents per share, for the year-ago period. Net sales rose 7% to $14.8bn, boosted by new product innovations across the company.
The company said the results from its snacks and coffee business were heavily impacted by Hurricane Katrina. Unit volume declined 7% and sales were down 5% to $706m due to the disruption of the coffee business caused by the hurricane. Coffee price increases taken last fiscal year in response to higher bean costs added 5% to sales growth. Mix effects reduced sales by 3%. Net earnings were $73m, down 6% due primarily to the business disruption and other damages associated with Hurricane Katrina.
