On Friday, Procter & Gamble Co. (NYSE: PG) reported a $2.9 billion profit in the first quarter which is up 5% from last year’s same period with total sales rising 1% to $16.7 billion. Although this matched Wall Street analysts’ expectations, P&G’s sales and $1.09 in core earnings per share still beat predictions topping higher than usual. The company has maintained their growing earnings per share from 5% to 7% with total sales increasing to 3% and organic sales rising from 2% to 3%.
Gillette razors has made P&G’s grooming department the weakest performer while organic sales dropped down 6%. Commodity costs also hit the company with $100 million and touched profit margins due to the Gulf Coast hit by hurricanes. However, organic sales in China reported an 8% increase even after the country didn’t offer enough upscale products. P&G has then spent the last year repositioning their brand offerings.
“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 David Taylor, Chairman, President and Chief Executive Officer. “We delivered organic sales growth in a decelerating global market and against a relatively strong base period. Market share trends continue to improve, with more of our top brands and countries holding or growing share. Looking forward, we will drive innovation, productivity and organization transformation to accelerate top-line growth while further expanding our industry-leading profit margins.”