The Procter & Gamble Company Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2016; Revised Earnings Guidance for the Fiscal 2017
January 20, 2017 at 07:00 am
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The Procter & Gamble Company announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2016. For the quarter, the company reported net sales were $16.856 million against $16.915 million a year ago. Operating income was $3.875 million against $3.853 million a year ago. Earnings from continuing operations before income taxes were $3.256 million against $3.803 million a year ago. Net earnings from continuing operations were $2.561 million or $0.93 diluted earnings per share against $2.905 million or $1.01 diluted earnings per share a year ago. Net earnings attributable to the company were $7.875 million or $2.88 diluted earnings per share against $3.206 million or $1.12 diluted earnings per share a year ago. Non-GAAP operating income was $3.966 million against $3.982 million a year ago. Non-GAAP net earnings attributable to the company were $2.956 million or $1.08 diluted earnings per share against $2.983 million or $1.04 diluted earnings per share a year ago.
For the six months, the company reported net sales were $33.374 million against $33.442 million a year ago. Operating income was $7.646 million against $7.621 million a year ago. Earnings from continuing operations before income taxes were $6.994 million against $7.457 million a year ago. Net earnings from continuing operations were $5.436 million or $1.93 diluted earnings per share against $5.682 million or $1.97 diluted earnings per share a year ago. Net earnings attributable to the company were $10.589 million or $3.81 diluted earnings per share against $5.807 million or $2.03 diluted earnings per share a year ago. Cash from operating activities was $6.025 million against $8.018 million a year ago. Capital expenditure was $1.429 million against $1.223 million a year ago. Non-GAAP operating income was $7.826 million against $7.822 million a year ago. Non-GAAP net earnings attributable to the company were $5.861 million or $2.11 diluted earnings per share against $5.783 million or $2.02 diluted earnings per share a year ago.
The company announced that it is raising its guidance for organic sales growth from approximately 2% to a range of 2% - 3% for fiscal 2017. The company maintained its expectation for core earnings per share growth of mid-single digits versus fiscal 2016 core EPS of $3.67. All-in GAAP earnings per share are expected to increase 48% to 50% versus fiscal year 2016 GAAP EPS of $3.69. The fiscal 2017 GAAP EPS estimate includes approximately $0.12 per share of non-core restructuring costs and $0.13 per share of charges related to early debt retirement that was executed in the second fiscal quarter. Also included in GAAP EPS is the $1.95 gain from the divestiture of 41 Beauty Brands to Coty in a transaction that was completed on October 1, 2016.
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 Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2016; Revised Earnings Guidance for the Fiscal 2017