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Net Sales in P&G's Fiscal 2015 Q1 Flat

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The Procter & Gamble Company reported first quarter fiscal year 2015 core earnings per share of $1.07, an increase of two percent versus the prior year. Organic sales grew 2% for the quarter. Reported net sales were $20.8 billion, unchanged versus the prior year, including a negative two percentage point impact from the combination of foreign exchange and minor divestitures.

“P&G’s first quarter results were in line with our expectations, despite a very difficult operating environment,” said A.G. Lafley, chairman, president and CEO. “We continue to accelerate and increase productivity savings, sharpen our strategies and strengthen our portfolio by focusing on our biggest opportunities.”

Organic sales in the company's beauty, hair and personal care business units were unchanged, as pricing benefits from its prior fiscal year increases across all business units were offset by lower volume in its prestige business unit. 

Organic sales for its grooming business unit were unchanged, as higher pricing and innovation on blades and razors and higher volume in appliances from innovation were offset by lower blades and razors volume in developed regions. 

In line with Lafley's "focusing on our biggest opportunities” statement, P&G announced its intention to exit the Duracell personal power business by creating a stand-alone Duracell company. P&G said its goals in the process of exiting this business are to maximize value to P&G’s shareholders and minimize earnings per share dilution.

P&G said it is exiting the battery business in two steps. The first step was finalizing an agreement to sell its interest in a China-based battery joint venture, which it accomplished in late-August. Terms of this transaction were not disclosed. The second step is the exit of the Duracell business. Although no decision has been made on the form of the exit, P&G’s current preference is a split-off of the Duracell business into a stand-alone company.

The complete fiscal report is available from P&G.

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