Procter & Gamble S&E
This article was originally published in The Rose Sheet
The beauty business is "holding up quite well" relative to other business divisions because of its "diversified portfolio across categories, countries and channels," Procter & Gamble's recently appointed Treasurer Teri List said during a Jan. 30 second-quarter analyst call. Sales of retail hair-care products grew low single digits in Q2 (ended Dec. 31) with "broad based" gains across all brands, including Pantene, Head & Shoulders, Herbal Essences and Nice 'n Easy. Net sales for beauty, however, declined 4% to $4.9 billion for the quarter due to an unfavorable foreign exchange impact and a 1% volume decline, the firm reports in a same-day release. Net income for beauty fell 10% to $799 million due to a reduction in net sales and lower operating margin from higher commodity costs. P&G's grooming business, which includes Gillette, declined 7% in the period to $2 billion, and earnings fell 3% to $416 million. Overall sales for the quarter declined 3% to $20.4 billion, driven by unfavorable foreign exchange and lower shipment volume. Sale of P&G's Folgers coffee business drove a net earnings increase of 53% to $5 billion. P&G revised fiscal year 2009 guidance, predicting sales will be flat to down 4%, compared with earlier forecast of 1 to 3% growth
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