P&G Earnings Edge Up But Shaving Still Weak

Mohammad Ali (@ChaudhryMAli88) Published October 20, 2017 | 05:15 PM

Procter & Gamble reported a modest boost in quarterly earnings Friday, with gains in beauty and health care products offsetting more weakness in shaving products

New York, (APP - UrduPoint / Pakistan Point News - 20th Oct, 2017 ) :Procter & Gamble reported a modest boost in quarterly earnings Friday, with gains in beauty and health care products offsetting more weakness in shaving products.

The consumer products giant, whose slate of products include Crest toothpaste and Oil of Olay soap, said net profit for the fiscal first quarter of 2018 came in at $2.9 billion, up 5.1 percent from the year-ago period.

Sales gained 0.8 percent to $16.7 billion. "First quarter sales and earnings results were in line with our going-in expectations and keep us on track to deliver our targets for the fiscal year," said chief executive David Taylor.

"Market share trends continue to improve, with more of our top brands and countries holding or growing share." Strong categories included beauty -- which was boosted by strong growth in Chinese premium skin products and health care -- where the sale of electric toothbrushes was again a bright spot.

But P&G saw no relief from the continued slump in shaving, where competition from newer US e-commerce brands has bruised the performance of Procter's Gillette brand. Sales in grooming sank five percent from the year-ago period.

The weakness in Gillette was among the trouble spots highlighted in a campaign by activist shareholder Nelson Peltz of Trian Fund Management in which Procter has claimed a narrow victory after a hard-fought and costly campaign.

Peltz still considers the vote too close to call and said he will wait until final results are certified by an independent inspector. P&G shares fell 1.7 percent in pre-market trading to $90.