Foreign Exchange, Other Factors, Impact P&G’s Sales Performance

Procter & Gamble’s fourth quarter – April to June – financials show a significant drop (three percent) in net sales to $16.1 billion, mainly reflecting the impact of currency fluctuations, Venezuela deconsolidation and “minor brand divestitures.”  Organic sales, however, were up two percent, thanks to a concomitant increase in organic shipment volume. The company said diluted net earnings per share were $0.69, an increase of 283 percent over the prior year. Core EPS were $0.79, a decrease of 15 percent due mainly to higher marketing spending, lower gains from minor brand divestitures, and a higher core effective tax rate. Cash flow remained strong, with fiscal year adjusted free cash flow productivity of 115 percent. Top sector sales performers were grooming (up seven percent) and healthcare (up eight percent).