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P&G earnings rise, eyes sales growth in 2017
[NEW YORK] Procter & Gamble reported a jump in fiscal fourth-quarter earnings Tuesday and predicted that sales would return to positive growth next year.
Net income for the quarter ending June 30 at the maker of Bounty paper towel and Vicks cough drops was US$2.0 billion, up 274 per cent from the year-ago period, which included a large charge related to currency devaluations in Venezuela.
Revenues were down three per cent to US$16.1 billion.
The consumer products giant, which has been stymied by the effects of the strong dollar on overseas markets, said sales grew in all five of its product offerings when currency effects were stripped out.
However, sales were down three per cent including currency swings, with the beauty business down the most at five per cent.
"The fourth quarter was another period of progress," said chief executive David Taylor.
"Looking forward, we're committed to continued productivity improvement and cost savings that provide the fuel for innovation and investments needed to accelerate and sustain faster top-line growth."
For the year, P&G reported net income of US$10.5 billion, up 49 per cent from the year-ago period.
Sales for fiscal 2016 were US$65.3 billion, down eight per cent.
P&G forecast sales growth of one per cent in 2017, despite a hit from foreign exchange in the first quarter.
Shares of P&G were off 0.1 per cent in pre-market trade.