P&G Sales decline 12% to $16.5 Billion
On Friday, Procter & Gamble Co. reported that their sales fell 12% to $16.5 billion in the first quarter. The Cincinnati-based company said that they missed the $17 billion average projection which was being made by eight analysts from Bloomberg. The Company reported that their earnings adjusted for one-time gains and costs were 98 cents per share.
The PG Company reported that its earnings were 98 cents per share surpassing the estimates done by some analysts of 95 cents. David Taylor, Incoming Chief Executive Officer of the Company, is under pressure and looking out the ways to revive growth and mitigate the effects of a strong dollar, which reduced sales by about 9% in the quarter.
Ali Dibadj, an analyst at Sanford C. Bernstein & Co., said they have nothing left with them except their brands. Ali added that all their competitors are performing well than them. In the early trading in New York, P&G fell 0.5 percent to $74.50 at 7:24 a.m. Also, 18% drop in the shares of the Company has been reported this year compared with a 4.3% gain for the Standard & Poor’s 500 Consumer Staples Index. It has been reported that the stock of the Company has declined by 11% in the last 12 months.
Taylor will be the new CEO of P&G and will be taking up the post from November 1. Its earlier chief A.G. Lafley who has served two terms in the company has taken many measures among them was cost-cutting, which has derived mixed results.
As per experts, the gross margin of the company jumped 3.1% points in the quarter and majority of the credit has been given to cost savings.
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