PG Procter and Gamble Co

By Joshua Jamerson 

Procter & Gamble Co. said sales in its latest quarter fell slightly from a year ago but the drop was less than Wall Street expected, offering the first glimpse at the consumer-products giant's operations since it shed the bulk of its beauty business.

The company reported organic sales growth across its segments, and shares rose 1.8% to $86.25 in premarket trading Friday.

P&G has struggled for years to accelerate sales growth facing slowing demand for its consumer staples like fabric softener and increased competition from new smaller & nimbler rivals. The company determined a focus on areas like salon products and designer perfumes that distracted from core areas and hurt its growth.

In June 2015, P&G announced it would shed brands such as Wella shampoos, Clairol hair dye and CoverGirl makeup and merge them with Coty Inc. in a complicated deal originally valued at $13 billion. The report Friday marked P&G's first since it unloaded the bulk of the beauty business to Coty; the deal closed last fall.

P&G reported net income of $7.88 billion, or $2.88 a share, compared with year-ago earnings of $3.21 billion, or $1.12 a share. On an adjusted basis, excluding gains from the sale, the company said it earned $1.08 a share, slightly above analysts' projections for $1.06 a share.

Sales edged lower to $16.86 billion from $16.92 billion a year ago, less of a drop-off than the $16.77 billion analysts were expecting.

P&G has shown recently it is able to cut costs but had yet to deliver on a promise to meaningfully increase revenue. Investors have been looking for P&G to post improved organic-sales growth, a measure that strips out currency moves, acquisitions and divestments.

The company said organic sales increased 2% driven by a 2% increase in organic shipment volume, as pricing and mix had no net impact on quarterly sales.

--Imani Moise contributed to this article.

(END) Dow Jones Newswires

January 20, 2017 07:57 ET (12:57 GMT)

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