P&G’s Q3 segment results prove to be mixed bag
CINCINNATI — Procter & Gamble posted on Thursday third-quarter earnings that were largely in-line with expectations as segment results proved to be a mixed bag.
“Our third quarter earnings results were largely in-line with what we had expected,” said chairman, president, and CEO A.G. Lafley. “We delivered double-digit constant currency core EPS growth with significant currency-neutral gross and operating margin expansion from over 400 basis points of productivity savings from programs that continue to gain momentum. This quarter the productivity progress was offset by foreign exchange. As we have done before, we’ll offset foreign exchange over time through a combination of pricing, mix enhancement and cost reduction. We are focused on the significant opportunities in our control, including brand initiatives and product innovation, business and brand portfolio simplification, overhead savings and major supply chain productivity initiatives, to improve results in 2015 and beyond.”
During the quarter, P&G posted core earnings per share of 92 cents. Diluted net earnings, which include all restructuring charges and impacts from discontinued operations, were 75 cents per share.
All-in net sales decreased 8% versus the prior year to $18.1 billion in the January-March quarter, including a negative eight percentage point impact from foreign exchange and a negative one percentage point impact from minor brand divestitures. Organic sales grew 1%.
Beauty, hair, and personal care segment organic sales decreased 3% as a positive impact from pricing was more than offset by lower volume. Innovation-driven organic sales growth in the deodorants, cosmetics and salon hair care categories were more than offset by sales declines mainly from the prestige fragrance and mass skin care categories. Hair care organic sales were down in developed markets due mainly to increased competitive promotional activity in the United Stats and customer inventory reductions in China.
Grooming segment organic sales increased 9% due to higher pricing across all regions on blades and razors, favorable volume and product mix from premium innovation on both the Gillette and Braun businesses.
Healthcare segment organic sales increased 6% behind favorable geographic mix and pricing in oral care and higher pricing in personal health care. Higher volume in personal health care driven by a stronger cough-and-cold season was offset by lower volume in oral care developing markets following price increases.
Baby, feminine and family care segment organic sales increased 2% behind pricing and mix in baby care and feminine care, including the benefits from the Always Discreet entry into the adult incontinence category and continued strong growth of Pampers Swaddlers in North America.
For fiscal year 2015, P&G said it now expects organic sales growth of low single digits for the fiscal year. Net sales growth is expected to be down 5% to 6% versus the prior fiscal year, including a negative 6% to 7% headwind from foreign exchange and a 1% impact from minor brand divestitures.
CVS/pharmacy to promote exclusive brands with ‘Fill Your Bag’ promotion
WOONSOCKET, R.I. — CVS/pharmacy has announced that it will be kicking off a "Fill Your Bag" promotional event, helping shoppers save on CVS brand products, as well as on other select exclusive product lines, in all of its 7,800 stores.
This event will run in store and online from April 26 through May 23. To participate, members of the ExtraCare program can scan their cards at the ExtraCare Coupon Center to receive a 30% off coupon each week, with a limit of one coupon per week. Customers who participate in store will receive a reusable shopping bag that is free with purchase. Customers can then choose from more than 3,000 CVS/pharmacy exclusive items and fill their bags or shopping carts to receive 30% off their purchase.
"Our Fill Your Bag event is a great opportunity for customers to try some of our exclusive products," said Cia Tucci, VP of store brands for CVS/pharmacy. "With more than 3,000 products included in the promotion, it's an easy way to save on all kinds of spring essentials or every day health and beauty needs. Plus, all of our exclusive store brand products come with a 100% money-back guarantee."
During the promotion, ExtraCare members will have the opportunity to save on the following CVS/pharmacy exclusive product lines:
- CVS/pharmacy brand: Products that carry the CVS/pharmacy brand name range from allergy and cold remedies to first aid essentials and personal care items, including CVS/pharmacy 24 Hour Indoor/Outdoor Allergy Relief, and CVS/pharmacy Extra Strength Pain Reliver.
- Beauty 360: Beauty 360 features a wide range of beauty products including manicure and pedicure kits, brushes, and cosmetic implements.
- Gold Emblem Abound: Launched in May 2014, this newer line offers customers a range of better-for-you snack and grocery items. Each product is free of artificial flavors and preservatives and contains no trans fats. In addition, the Gold Emblem Abound line includes products that are gluten-free certified, sodium-free, cholesterol-free and contain sources of protein, fiber, omega-3s, probiotic cultures and potassium.
- Gold Emblem: Includes more than 250 snacks, beverages, and groceries, including nuts, trail mixes, chips, pretzels, dried fruits, candies, cookies, spices, juices, condiments, baking essentials and breakfast bars.
- Total Home: Among the wide variety of products included in the line are facial and bath tissue, paper towels, garbage liners, food storage necessities, kitchen and bathroom cleaners, gardening aids, and more.
- Caliber: This line offers classroom and office supplies, including paper, pens, pencils, and notebooks at an affordable price.
- Just the Basics: Just the Basics offers a selection of practical items from a variety of categories throughout the store including household, beauty, baby, grocery and personal care.
Pet Central: The Pet Central line offers items, including snacks, toys, beds, kitty litter and shampoos.