Procter & Gamble on Tuesday reported quarterly profit that topped Wall Street expectations as it worked on simplifying its product lineup and cutting costs to offset slower growth.
The maker of Tide detergent, Charmin toilet paper and Pantene shampoo said its sales declined for its fiscal fourth quarter, hurt by unfavourable currency exchange rates. When excluding such factors, the world’s biggest consumer products maker said organic sales rose 2%, boosted by higher volume.
Procter & Gamble said its earnings were affected by its stepped up investments in marketing, and divestitures of some smaller brands. Organic volume rose in all segments including beauty, health care and grooming, it said.
For the three months ended June 30, the company earned $1.95 billion. When excluding one-time items and discontinued brands, it said it earned 79 cents per share. That was more than the 74 cents per share Wall Street expected, according to Zacks Investment Research.
Total revenue was $16.1 billion in the period, also exceeding the $15.84 billion analysts expected.
For its fiscal 2017, P&G said it expected organic sales to climb about 2%.
P&G shares have risen roughly 9% since the beginning of the year, while the Standard & Poor’s 500 index has risen 6%. The stock has increased 12% in the last 12 months.
