Procter and Gamble sales figures fall short of expectations
Struggling dollar and growing competition partly to blame, company says
Despite showing an increase, Procter and Gamble’s latest sales figures fell short of expectations for the first time in a year.
It may be a case of expectations being too high, rather P&G failing to deliver growth. A struggling dollar and growing competition were partly the causes, it said.
P&G has a large stable of big household brands such as Oral B toothpaste, Pampers nappies, Always tampons, Ariel washing powder, Pantene shampoo and Gillette razors.
The company put the lower than predicted revenues down to performances in key divisions. Its fabric and home-care products, the largest part of its business, rose 4 per cent to $5.79bn (£4.4bn, €5.22bn), while baby and feminine products rose 1 per cent to $4.58bn.
The firm’s male grooming business also fell short, rising 2 per cent to $1.65bn, as it faces growing competition from the likes of Harry’s razors which established itself online before venturing into the shopping malls.
P&G has been developing new lines with better marketing in an attempt to appeal to younger shoppers as it felt growing competition from Unilever and others.
Overall, net sales rose 5 per cent to $18.24bn, against expectations of $18.37bn. As a result, it has raised its fiscal 2020 forecast for core earnings per share growth from 5 to 10 per cent to between 8 and 11 per cent.
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