The Procter &Gamble Company (NYSE: PG) announced diluted net earnings per share of $1.58, a 61 percent increase for the October - December quarter. Earnings per share include a $0.63 gain from the Folgers transaction completed during the quarter. Consistent with the Company's guidance for the quarter, organic sales were up two percent on price increases and positive product mix. Net sales were three percent below the year-ago quarter at $20.4 billion primarily due to unfavorable foreign exchange and lower volume.
Results reported for Q4 (Ending December 31) for the segment that includes P&G's Pringles snacks (snacks and pet care):
Snacks and Total
Pet Care P&G
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Net sales growth: -1% -3%
Foreign exchange impact: -5% -5%
Acquisition/Divest impact: 0% 0%
Organic sales growth: 4% 2%
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Net Sales (in Millions) 791 20,368
%Change vs Year ago -1% -3%
Earnings From Continuous
Operations Before
Income Tax 103 3,988
%Change vs Year ago 0% -9%
Net Earnings From
Continuous Operations: 63 2,962
%Change vs Year ago -6% -7%
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The report speaks of a mid single digit decline in volume of snacks due to supply constraints in North America
[In the conference call on this earnings report P&G states on snacks:
Volume in snacks was down mid single digits. As we have prepared for the restage of Pringles in North America we have had to manage trade inventories to match manufacturing capacity. Pringles all-outlet value share of the U.S. potato chip market declined about 1.5 points versus prior year to 11% due mainly to lower promotional activity ahead of the brand restage.]
[In the conference call on this earnings report P&G states on snacks:
Volume in snacks was down mid single digits. As we have prepared for the restage of Pringles in North America we have had to manage trade inventories to match manufacturing capacity. Pringles all-outlet value share of the U.S. potato chip market declined about 1.5 points versus prior year to 11% due mainly to lower promotional activity ahead of the brand restage.]
