Boston, MA 04/24/2014 (wallstreetpr) – The Procter & Gamble Company (NYSE:PG), the American multinational largest consumer goods company with a wide range of products like Tide, Gillette, and Olay has shown a substantial increase in the company’s profits primarily coming from the increased sales in home care product segment.
P&G has earned revenue of $20.6 billion in its third quarter which is almost similar to its last quarter results which doesn’t include disinvestments or currency devaluation.The cost cutting measures adopted recently are seen as one of the major reasons for increased profits.A 6% growth in sales has been reported from Tide, Duracell and Swiffer.Organic sales have also risen by 3%. The company had increased the prices of some of the products recently.Inflation is seen as one of the prime reasons to increase the prices as the company was coming under pressure from increased costs.
Company in a tough financial position
The Procter & Gamble Company (NYSE:PG) is going through a rough phase financially as it has incurred losses in its various products. P&G has sold its pet food division, Folgers coffee brand and Warner Chilcott pharmaceuticals in the previous years. P&G is following a restructuring plan which includes job cuts and new project launches to increase the profits and decrease operational and administrative costs. The company is focusing on innovative and improved methods of production.
Products providing a new life to P&G
Organic sales in home care products like Tide and Pampers have risen by 6%.Grooming division products like Venus and Gillette showed a 1% rise whereas beauty products like Head and shoulders, Cover girl and Olay, considered to be the most profitable showed a rise of only 2%.Baby and feminine products sales were up 2%, but sales from health care products were flat. Core earning per share increased to $1.04.
The Procter & Gamble Company (NYSE:PG) is expecting a 3-4% increase in profits owing to its total organic sales. But it is estimated that there would a net 1% increase in its total profit because of foreign exchange negative influences.
