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P&G profit beats estimates

Procter & Gamble Co, the consumer products behemoth, reports a better-than-expected third quarter profit, boosted by cost-cutting and higher selling prices, but revenues disappoint

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Procter & Gamble Co (NYSE:PG), the consumer products behemoth, on Tuesday reported a better-than-expected third quarter profit, boosted by cost-cutting and higher selling prices.

However, P&G's sales declined for the seventh quarter in a row as higher prices weighed on volumes and as the company consolidates its product portfolio to focus on faster-growing brands.

P&G's organic sales – sales excluding acquisitions, divestments and currency impact – increased 1% in the third quarter ended March 31.

But, analysts have warned that the Cincinnati-based company's reliance on price hikes, rather than volume growth, to boost organic sales would be unsustainable.

The company now expects full-year core earnings to fall 3-6%, compared with the decline of 3-8% it had estimated in January.

The company said volumes fell in all businesses, except in the baby, feminine and family care business. Overall volumes declined 2%, in part as P&G decoupled Venezuela results from the total.

P&G's net revenue fell 7% to $15.76bn. Analysts were expecting revenue of $15.81bn.

P& G shares were down 2.2% at $79.63.

Quick facts: Procter & Gamble

Price: 123.89 USD

NYSE:PG
Market: NYSE
Market Cap: $306.71 billion
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