Procter & Gamble Co. on Tuesday reported quarterly profit that topped Wall Street expectations as it worked on slashing costs and pruning its product lineup to offset slower growth.
The maker of Tide detergent, Charmin toilet paper and Pantene shampoo said its sales declined for its fiscal fourth quarter, hurt by unfavorable currency exchange rates. But when excluding such factors, the world’s biggest consumer products maker said organic sales rose 2 percent, boosted by higher volume.
Procter & Gamble said its earnings were affected by its stepped up investments in marketing, and divestitures of some smaller brans. Organic volume rose in all segments, including beauty, health care and grooming, it said.
For the three months ended June 30, the company earned $1.95 billion, or 69 cents per share. When excluding one-time items and discontinued brands, it said it earned 79 cents per share. That was more than the 74 cents per share Wall Street expected, according to Zacks Investment Research was for earnings of 74 cents per share.
Total revenue was $16.1 billion in the period, also exceeding the $15.84 billion analysts expected.
For its fiscal 2017, P&G said it expects organic sales to climb about 2 percent.
Its shares rose 66 cents to $87.07 in premarket trading.
P&G shares have risen roughly 9 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 6 percent. The stock has increased 12 percent in the last 12 months.
