P&G posts higher than expected results
Procter & Gamble (P&G) has reported higher-than-expected quarterly profit despite a drop in sales.
Sales fell in all P&G’s business segments except baby care during the period, despite a huge marketing push under its global Thank You Mum Olympic sponsorship campaign.
Last week, P&G’s global marketing and brand building officer, Marc Pritchard, told Marketing Week that it expects to make $500m (£322m) in extra sales for the year to April 2013 as a result of its Olympic sponsorship.
Core operating profit for the April to June quarter increased by four percent. P&G’s net sales were $20.2bn (£13bn), down one per cent from the same period a year earlier. Excluding the impact of acquisitions, asset sales and currencies, sales increased by three per cent.
There has been pressure on P&G president and chief executive officer Bob McDonald to defend slowing growth and activist William Ackman investor took a stake in the household products maker, stoking speculation that parts of the company could be sold off.
Bob McDonald, says the company started its new financial year with “very strong” momentum in developing markets and with a $10bn (£6.4bn) cost-cutting plan well underway.
He added: “Despite a difficult macro environment, we see significant opportunities for top- and bottom-line growth.”