P&G profit, sales fall

NEW YORK: Procter & Gamble Co, maker of Ariel detergent and Gillette razors, reported an 8.3% fall in third-quarter profit, citing a slowdown in market growth, geopolitical uncertainty and a stronger dollar.

Net income attributable to the Cincinnati, Ohio-based company declined to $2.52 billion, or 93 cents per share, in the three months ended March 31, from $2.75 billion, or 97 cents per share, a year earlier.

Excluding items, P&G earned 96 cents, beating the average analyst estimate of 94 cents, according to Thomson Reuters I/B/E/S.

The consumer goods giant, whose iconic brands include Tide, Pampers, Head-and-Shoulders and Vicks, said net sales fell about 1% to $15.61 billion — the thirteenth straight quarter of declines. Analysts had been looking for $15.73 billion.

P&G’s quarterly sales have fallen for more than three years due to the company cutting its brand portfolio.

The company has been selling off unprofitable brands and focusing on core brands such as Tide and Pampers to revive sluggish sales. It sold 41 of its brands, including Clairol and Wella, to Coty Inc in a $12.5 billion deal in October.

P&G, which traces its roots to a familyrun candle and soap business in 1837, maintained expectations of a mid-single digit rise in full-year adjusted earnings per share growth, and a 2-3% increase in organic sales growth.

The company’s stock, which has jumped 10.6% in the past year, was down 0.7% in pre-market trading.

P&G has said it plans to save as much as $10 billion in costs over the next five years, and use a chunk of these savings to improve packaging, research and development, and sales coverage.