Revenues slumped 9% to $16.9bn in the quarter ended in December, in line with expectations. The Cincinatti, Ohio-based company said the decline was mainly due to the stronger dollar and a smaller impact from changes in its accounting of the Venezuela business following foreign exchange policy changes in the South American country. But stripping out the foreign exchange factor and investments and divestitures, so-called “organic” sales increased two%.
“We are encouraged by our return to organic sales growth in the quarter,” said David Taylor, the company’s new president and chief executive, in a statement.
“With the top-line improvement and continued cost reduction, we delivered solid core operating income and EPS growth in the face of significant macroeconomic and geopolitical headwinds.”
Taylor took the helm of P&G on November 1, succeeding AG Lafley who led the company’s restructuring focused on strengthening its brand portfolio.
The company’s cost-cutting program, begun more than three years ago, reduced costs by 14% in the second quarter.
The maker of Tide detergent, Crest toothpaste and Pampers diapers said it had bought back $2.0bn of common stock and paid $1.9bn in dividends to shareholders in the quarter.
Net sales fell in all five divisions, led by 10% declines in beauty, grooming and baby, feminine and family care products.
