P&G profit slightly grows in first quarter

P&G profit slightly grows in first quarter

Manufacturer Procter & Gamble has managed to increase its net profit by 2 % in 2014's first quarter, even though turnover disappointingly remained level with exchange rates a huge pressure on the results.

Turnover does not grow

P&G has made a 2.61 billion dollar profit (1.89 billion euro) in its first quarter of 2014, a 1.7 % rise compared to the 2.57 billion dollars (1.86 billion euro) it managed the year before. Turnover remained level though, at 20.6 billion dollars (14.9 billion euro). Without exchange rate fluctuations, turnover would have increased 3 %.

 

Because of the exchange rates, the company decided to revise its goals for fiscal year 2013/2014 back in February as it suffers tremendously when currencies are exchanged into dollars. It now expects a 0 to 2 % turnover increase and a 3 to 5 % profit increase.

 

P&G is currently in a 5-year restructuring program, which should eliminate costs significantly in order to improve the results. A major focus is to increase market share in emerging markets, as its organic growth there grew by more than 5 %. The developed markets only managed a 1 % organic growth, but these have a larger profit margin compared to the emerging markets. That is because P&G spends on marketing to gain more brand awareness in emerging markets.

Questions or comments? Please feel free to contact the editors


Sephora launches smaller store formula

24/07/2017

Cosmetics manufacturer Sephora launched a smaller store formula in the United States. Up until now, it had focused on large stores, but has now turned its attention to smaller stores.

Brazilian takeover of The Body Shop confirmed

29/06/2017

L’Oréal has officially confirmed the sale of its British subsidiary The Body Shop to Brazilian Natura Cosméticos. The deal was signed this week, is estimated to be worth 1 billion euro and should be finalized before the end of the year.

AS Watson wants to acquire Holland & Barrett

22/06/2017

AS Watson, Kruidvat’s parent company, has entered negotiations to acquire Holland & Barrett. It is apparently willing to pay one billion pounds (1.15 billion euro).

Estée Lauder doubles Victoria Beckham product range

22/06/2017

Things are going very smoothly for Estée Lauder and Victoria Beckham. Their first two “limited collections” sold out instantly and that is why the former Spice Girl will create a third collection.

Brazilian competitor on the verge of The Body Shop acquisition

09/06/2017

French L’Oréal has entered exclusive negotiations with Brazilian Natura Cosméticos to sell store chain The Body Shop, in a deal that should be worth a billion euro.

Belgian online pharmacy Pharmasimple wants to conquer Europe

29/05/2017

Pharmasimple, an online pharmacy founded in Brussels seven years ago, experienced a 66.2 % turnover growth to 11.3 million euro in 2016. However, it has lofty ambitions, targeting a 100 million euro turnover in the next five years.

Back to top