Consumer goods firm Procter & Gamble has seen its net sales decline by 1% in the third quarter of its financial year.
The Cincinnati-based company posted sales of $15.6 billion for the period, with net sales down its Beauty (-2%), Grooming (-6%), Fabric & Home Care (-1%), and Baby, Feminine & Family Care (-1%) divisions.
Its Health Care segment was the only one to see a net sales increase in the period, rising by 4%. All segments, apart from Grooming, saw an organic sales decline, however.
The group said that its Grooming division was impacted by 'lower volume and reduced pricing in Shave Care'. P&G is home to the world's biggest shaving accessories brand, Gillette.
Slowdown In Growth
“The third quarter macro environment was characterized by a slowdown in market growth, continued geopolitical disruptions and foreign exchange challenges,” said David Taylor, P&G's Chairman, President and CEO.
“Against this backdrop, we delivered modest organic sales growth and double-digit Core EPS growth, and we increased the quarterly dividend for the 61st consecutive year. Looking forward, we are maintaining our organic sales and Core EPS guidance ranges for the year and increasing our outlook for adjusted free cash flow productivity.”
Looking ahead to the coming year, P&G has said that it is maintaining its guidance for organic sales growth in the region of 2% to 3%.
However, the company 'expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by two to three percentage points. As a result, P&G estimates all-in sales to be down one percent to in-line with the prior fiscal year.'
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
