P&G’s quarterly sales disappoint as its grooming unit feels the pressure
Bengaluru — Procter & Gamble’s (P&G) quarterly sales fell below Wall Street estimates on Tuesday, as the consumer products company had a disappointing performance at its grooming unit that makes Gillette razors and shaving products. Its shares fell 2% before the bell. The company cut prices on products in the grooming business by 3% to claw back market share lost to start-ups such as Dollar Shave Club. Sales in the unit fell 1% to $1.65bn, while volumes dropped 1%. A shrinking market in the Middle East, Africa and Latin America region hurt revenue at its Baby, Feminine and Family Care business, leading to a 2% drop in sales at the unit — its second biggest contributor to revenue. For fiscal 2019, P&G said it sees organic sales rising 2% to 3% and core earnings per share growth of 3% to 8%. At the mid-point of the range, fiscal 2019 core earnings per share is $4.45, above the average analyst estimate of $4.39, according to Thomson Reuters. Net income attributable to the company fell ...
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