P&G’s earnings Head & Shoulders above Wall Street’s expectations

 
Billy Bambrough
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Duracell batteries are just one of the many, many, many things that P&G make
Duracell batteries are just one of the many, many, many things that P&G make (Source: Getty)

Consumer goods giant Procter & Gamble has racked up earnings of $1.95bn, or 69 cents a share, up from $521m in the same period a year ago.

Though revenue fell 2.8 per cent to $16.1bn it still managed to handily beat Wall Street’s average estimates of $15.83bn.

Sales growth in grooming and health care offset falls in beauty, fabric and home care, and baby, feminine and family care products.

P&G – the world’s largest consumer products maker – is currently in the middle of a cost cutting drive led by chief executive David Taylor, who has been holding the reigns of the company for less than a year.

P&G is hoping it will be able to trim costs by $10bn over the next five years, adding to savings already eked out by former CEO Alan Lafley.

“The fourth quarter was another period of progress driving P&G’s results to a balance of strong top-line growth, bottom-line growth and cash generation,” Taylor said in a statement. “We grew organic volume and sales in all reporting segments. We increased investments in innovation and advertising, funded by strong productivity improvement.”

Shares in P&G are up nearly 13 per cent over the course of the year, outpacing the Dow Jones industrial average, which is up around four per cent over the same period.

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