P&G posts 2Q results, raises fiscal year outlook
CINCINNATI — Procter & Gamble posted a boost in sales and earnings for the second quarter and raised its outlook for the fiscal year, the company announced on Friday.
“Our second-quarter results were at the high end of our expectations on the top line and well ahead of forecast on operating profit, earnings per share and cash flow,” stated Bob McDonald, chairman, president and CEO. “Global market share trends improved as we continued to implement our growth strategy and made very good progress against our productivity and cost-savings goals. Our strong first-half results have enabled us to raise our sales, earnings and share repurchase outlook for the fiscal year, while we strengthen investments in our innovation and marketing programs.”
Diluted earnings per share were $1.39, an increase of 144% as core earnings rose 12% to $1.22. Noncore items include restructuring charges of 5 cents per share a 21 cent per share holding gain resulting from P&G’s purchase of the balance of the P&G’s baby care and feminine care joint venture in Iberia, which was completed in October.
Net sales totaled $22.2 billion, an increase of 2% compared with the year-ago period, including a negative 1% impact from foreign exchange. Organic sales grew 3%.
P&G increased its core earnings per share guidance for the year to $3.97 to $4.07, up 3% to up 6% versus prior year core EPS of $3.85, behind strong productivity improvement and resulting cost savings. P&G also raised its all-in GAAP earnings per share guidance to a range of $4.04 to $4.14, equating to growth of 10% to 13% versus prior year GAAP EPS of $3.66. The increase reflects higher core earnings and an increase in the noncore holding gain resulting from P&G’s purchase of the balance of our Baby Care and Feminine Care joint venture in Iberia. The all-in EPS range also includes noncore restructuring charges of $0.15.
P&G increased its organic sales growth guidance to a range of 3% to 4% for the fiscal year from a previous range of 2% to 4%. Foreign exchange is expected to reduce sales growth by 2%, resulting in guidance for all-in net sales growth of up 1% to 2% versus the prior year.
The company also increased its outlook for share repurchase to $5 billion to $6 billion, up from a prior range of $4 billion to $6 billion.
CVS Caremark’s Cheryl Mahoney assumes new role; new head of beauty/personal care named
WOONSOCKET, R.I. — Beauty retail veteran Cheryl Mahoney has assumed a new post at CVS Caremark, and the company has brought onboard Alex Perez-Tenessa to serve as VP retail merchandising – beauty/personal care, according to CVS Caremark.
Mahoney, who previously served as VP of beauty and personal care, has assumed the new role of VP, retail merchandising – promotion and business development. She will be responsible for maximizing the impact and profitability of the CVS/pharmacy promotional efforts across all front store categories. In addition to optimizing the use of the circular for promotion, Mahoney will lead the merchandising transition to a more personalized approach to promotion through the company’s ExtraCare loyalty program.
Mahoney will also lead a new effort aimed at creating the right merchandising assortments for the store clustering initiative.
Mahoney has spent more than 30 years at the chain. She has worked in the merchandising and category management field and has been instrumental in helping the company achieve market leadership in both beauty sales and market share.
Perez-Tenessa brings 15 years of experience in retail strategy, innovation and transformation with a deep concentration in merchandising. Prior to joining CVS Caremark, Perez-Tenessa was partner, retail practice, with McKinsey & Co., where he developed and led several merchandising transformational strategies with major retailers.
CVS Caremark stated that it will leverage his leadership as well as his strategic and innovation strength to build upon its successes and enhance the beauty and personal care business.
Rexall launches new exclusive Be.better line
MISSISSAUGA, Ontario — Canadian pharmacy retailer Rexall has unveiled its new flagship private brand, Be.better, a line of more than 100 products available exclusively at the more than 300 corporate Rexall and Rexall Pharma Plus stores.
The line includes healthier snack options, environmentally-friendly cleaning products, gluten-free vitamins, vegetarian probiotics and hair care products with natural oils such as oblipicha, argan oil or macadamia nut.
"Our customers have told us they are looking for more options to make it easier to take those small steps towards living better, in every area of their lives," stated Frank Scorpiniti, CEO of Rexall Pharma Plus. "Our new Be.better line provides Canadians with the tools they need to feel good about their choices. We are excited to introduce Canadians to our exclusive line with more to come."
The company noted that the key features and benefits of every Be.better product are identified by the checkmarks found on the front of the package.
- Be.better vitamins are naturally derived with no synthetic active ingredients. They’re free of artificial coloring and dyes and are 100%gluten-free;
- Be.better household products are free of artificial dyes and fragrances, SLS/SLES (sodium lauryl sulfate/sodium laureth sulfate) and are paraben free. They have no toxic ingredients and list all ingredients on their labels for easy review;
- Be.better beauty products are enriched with natural ingredients and are paraben free. All Be.better hair care products are also free of SLS/SLES; and
- Be.better snack products include items that are high in fiber, low in sodium or sodium-free, or gluten-free.
To celebrate the launch of Be.better, Rexall will begin a four-week promotion on Jan. 25, including special introductory prices.