P&G remains in line as quarterly earnings decline

PROCTER & Gamble posted a slight dip in quarterly profit that was in line with expectations yesterday, as the world’s largest household products maker raised prices and notched sales gains in each unit.

The maker of Pampers nappies and Tide detergent earned $3.02bn (£1.87bn), or $1.03 per share, in the quarter ended on 30 September, compared with $3.08bn, or $1.03 per share, a year earlier. It had fewer shares outstanding in the most recent quarter.

P&G, which makes everything from Gillette razors to Pantene shampoo, announced or implemented price increases on brands that account for the majority of its US sales and has pulled back on some promotional spending, which also effectively raises the prices consumers pay.

Sales rose 8.9 per cent to $21.92bn. Organic sales, which strip out the impact of acquisitions, divestitures and foreign exchange fluctuations, rose four per cent, coming in at the high end of the company’s two per cent to four per cent forecast.

The volume of goods sold rose two per cent, excluding acquisitions, asset sales and currency fluctuations, with growth in developing regions partially offset by a decline in developed regions.