The Procter & Gamble Company Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Provides Earnings Guidance for the Year 2016
January 26, 2016 at 12:00 pm
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The Procter & Gamble Company reported consolidated earnings results for the second quarter and six months ended December 31, 2015. For the quarter, the company reported net sales of $16,915 million compared to $18,495 million, operating income of $3,853 million compared to $3,579 million, earnings from continuing operations before income taxes of $3,803 million compared to $3,472 million, net earnings from continuing operations of $2,905 million or $1.01 per diluted share compared to $2,674 million or $0.92 per diluted share and net earnings attributable to company of $3,206 million or $1.12 per diluted share compared to $2,372 million or $0.82 per diluted share a year ago. Total operating activities were $8,018 million compared to $7,068 million a year ago. Capital expenditures were $1,223 million compared to $1,642 million a year ago. Core earnings per share were $1.04, an increase of 9%. Currency-neutral core earnings per share grew 21% versus the prior year.
For the six months, the company reported net sales of $33,442 million compared to $37,266 million, operating income of $7,621 million compared to $7,212 million, earnings from continuing operations before income taxes of $7,457 million compared to $6,979 million, earnings from continuing operations of $5,682 million or $1.97 per diluted share compared to $5,390 million or $1.85 per diluted share and net earnings attributable to company of $5,807 million or $2.03 per diluted share compared to $4,362 million or $1.51 per diluted share a year ago.
For the year 2016, the company is maintaining its outlook for organic sales growth of in-line to up low-single digits versus fiscal 2015. The company expects all-in sales to be down high-single digits in fiscal 2016, now including a negative 7% point foreign exchange impact and a 2-3% point drag from the combined impacts of the Venezuela deconsolidation and minor brand divestitures. The company announced core EPS, including foreign exchange impacts, is now projected to be down 3% to 8% versus last year's core EPS of $3.76. All-in GAAP earnings per share are expected to increase in the range of 38% to 46% versus the prior year. The company increased its outlook for adjusted free cash flow productivity from 90% to 100% of adjusted net earnings for the fiscal year.
Procter & Gamble Company is one of the world's leaders in producing and selling consumer products. Net sales break down by family of products as follows:
- care and hygiene products (38.3%): oral hygiene products (toothpastes, toothbrushes, mouthwashes, etc.; Crest, Oral-B, Scope brands, etc.), pharmaceutical products (Metamucil, Neurobion, Pepto Bismol, Vicks, etc.), toilet training pants (Luvs, Pampers), toilet papers and paper towels (Bounty, Charmin, Puffs), feminine protection products (Always, Always Discreet and Tampax), etc.;
- home care and laundry products (34.6%): dishwashing liquids, detergents, stain removers, fabric softeners, deodorizers, bleaches, etc. (Ariel, Downy, Gain, Tide Cascade, Dawn, Fairy, Febreze, Mr. Clean, Swiffer, etc.);
- beauty products (18.3%): hair care products (shampoos, colorings, and cream rinses; Head & Shoulders, Herbal Essences, Pantene and Rejoice brands), body care (soaps, shower gels, deodorants, etc.; Camay, Zest, Secret, Old Spice) and cosmetics (make-up and facial care; Max Facto, Covergirl and Olay);
- shaving products (7.8%): blades, razors, batteries, etc. (Braun, Gillette and Venus brands);
- other (1%).
The Procter & Gamble Company Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Provides Earnings Guidance for the Year 2016