Consumer products maker, Procter & Gamble (PG) posted 19% profit in the fourth quarter, due to cost controls and strong sales of new Gillette razors.
The company earned $2.27 billion, or 67 cents per share, compared to $1.9 billion, or 55 cents per share, a year earlier. Quarterly sales rose 8% to $19.27 billion from $17.84 billion, led by surging demand for its blades, razors, fabric, home care, and health care. Company registered 5% increase in its whole sales, while its overseas sale rose 3%.
Newly launched, Gillette Fusion shaving system and Venus Breeze shaver for women posted strong sales, whereas sales in its blades and razors increased by 18% to $1.4 billion.
Meanwhile, new products such as Tide detergent, Crest toothpaste and Olay skin care experienced growth and pushed company’s sales up by 12% to $76.5 billion for its fiscal year, from $68.2 billion.
After posting a lucrative quarter, PG is planning to repurchase $24 billion to $30 billion of its stock over the next three years at a rate of $8 billion to $10 billion per year.
A.G. Lafley, P&G’s chairman and chief executive, said:
Our strong cash generation results and our confidence in the business outlook have enabled us to substantially increase our share repurchase commitment for the next three years
Buoyant with the result, P&G is expecting overwhelming earning for the next fiscal year. It expects earnings per share to rise by $3.44 to $3.47. For the current quarter, the company forecast earnings per share of 88 cents to 90 cents, whereas Wall Street expects profits of 91 cents a share.
For the coming time, the company expects a tough competitive environment, as its rivals, such as Colgate-Palmolive Co. and Kimberly-Clark Corp., are spending on their restructuring savings to promote their brands. However, to counter its rival, P&G is funding its plans internally instead of taking restructuring charges.
Via: Mercury-News
