P&G reports 4% quarterly sales growth as volume contributes more than pricing

Procter & Gamble reported $23.3 billion in net sales for its fiscal first quarter, a 4% increase from the same period a year earlier. Organic sales, which exclude currency movements and acquisitions and divestitures, also increased 4% during the July-through-September quarter.

The composition of that growth is notable: volume added about two percentage points and favorable product mix added about one point, while pricing made only a minor positive contribution. Beauty and Fabric and Home Care each produced 5% organic growth, and the company's other major business segments also recorded positive organic sales growth.

Diluted earnings were $1.97 a share, up 1%, while core earnings were $2.00 a share, also up 1%. P&G generated $5.8 billion in operating cash flow and reported $4.8 billion in net earnings. It returned $3.9 billion to shareholders through $2.6 billion in dividends and $1.3 billion in share repurchases.

The quarter offers a useful consumer-products signal because growth did not depend mainly on another broad price increase. P&G maintained its fiscal-year organic-sales, earnings-growth and cash-return guidance while updating net-sales guidance to account for its Thorne acquisition. Those targets remain forecasts and may change with demand, costs, currencies or integration results.

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