The Procter & Gamble Company Reports Unaudited Consolidated Financial Results for the Second Quarter and Six Months Ended Jan. 31, 2018; Revised Financial Guidance for Fiscal 2018
January 23, 2018 at 07:00 am EST
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The Procter & Gamble Company reported unaudited consolidated financial results for the second quarter and six months ended Jan. 31, 2018. For the quarter, net sales were $17,395,000 against $16,856,000 for the same period of last year. Operating income was $4,003,000 against $3,875,000 for the same period of last year. Earnings from continuing operations before income taxes was $4,033,000 against $3,256,000 for the same period of last year. Net earnings from continuing operations was $2,561,000 against $2,561,000 for the same period of last year. Net earnings attributable to the company was $2,495,000 against $7,875,000 for the same period of last year. Earnings from continuing operations per diluted share was $0.93 against $0.93 for the same period of last year. Diluted net earnings per common share was $0.93 against $2.88 for the same period of last year.
For the six months, Net Sales were $34,048,000 against $33,374,000 for the same period of last year. Operating income was $7,738,000 against $7,646,000 for the same period of last year. Earnings from continuing operations before income taxes was $7,784,000 against $6,994,000 for the same period of last year. Net earnings from continuing operations was $5,431,000 against $5,436,000 for the same period of last year. Net earnings attributable to the company was $5,348,000 against $10,589,000 for the same period of last year. Earnings from continuing operations per diluted share was $2.00 against $1.93 for the same period of last year. Diluted net earnings per common share was $2.00 against $3.81 for the same period of last year. Total operating activities was $7,315,000 against $6,025,000 for the same period of last year. Capital expenditures were $1,900,000 against $1,429,000 for the same period of last year. Organic sales increased 2%. Diluted net earnings per share declined 68% versus the prior year due to the Beauty Brands divestiture gain in the base period and a current period net income tax charge related to the recently enacted U.S. Tax Cuts and Jobs Act. Core earnings per share increased 10% to $1.19, including a $0.05 per share benefit from the Tax Act. Adjusted free cash flow productivity was 91%.
The company said it is maintaining its guidance for organic sales growth in the range of 2%-3% for fiscal 2018. The company estimates all-in sales growth of about 3% for fiscal 2018, which includes a neutral to half-a-percentage-point benefit to sales growth from the combined impacts of acquisitions and divestitures and foreign exchange. The company said it is raising its core earnings per share growth outlook from 5%-7% to 5%-8% versus fiscal 2017 Core EPS of $3.92. It is raising the upper-end of the guidance range to reflect the potential benefit from the Tax Act. GAAP earnings per share are expected to decrease 30% to 32% versus fiscal year 2017 GAAP EPS of $5.59, which included the significant benefit from the Beauty Brands transaction that was completed in October 2016. The fiscal 2018 GAAP EPS estimate includes approximately $0.10 per share of non-core restructuring costs and $0.24 per share of non-core charges related to the Tax Act.
Procter & Gamble Company is one of the world's leaders in producing and selling consumer products. Net sales break down by family of products as follows:
- care and hygiene products (38.3%): oral hygiene products (toothpastes, toothbrushes, mouthwashes, etc.; Crest, Oral-B, Scope brands, etc.), pharmaceutical products (Metamucil, Neurobion, Pepto Bismol, Vicks, etc.), toilet training pants (Luvs, Pampers), toilet papers and paper towels (Bounty, Charmin, Puffs), feminine protection products (Always, Always Discreet and Tampax), etc.;
- home care and laundry products (34.6%): dishwashing liquids, detergents, stain removers, fabric softeners, deodorizers, bleaches, etc. (Ariel, Downy, Gain, Tide Cascade, Dawn, Fairy, Febreze, Mr. Clean, Swiffer, etc.);
- beauty products (18.3%): hair care products (shampoos, colorings, and cream rinses; Head & Shoulders, Herbal Essences, Pantene and Rejoice brands), body care (soaps, shower gels, deodorants, etc.; Camay, Zest, Secret, Old Spice) and cosmetics (make-up and facial care; Max Facto, Covergirl and Olay);
- shaving products (7.8%): blades, razors, batteries, etc. (Braun, Gillette and Venus brands);
- other (1%).
The Procter & Gamble Company Reports Unaudited Consolidated Financial Results for the Second Quarter and Six Months Ended Jan. 31, 2018; Revised Financial Guidance for Fiscal 2018