Procter cuts costs and profit advances 28% in the quarter

The manufacturer of toiletries, cleaning and personal care Procter & Gamble (P&G) announced net profits of US $ 2.75 billion for the first quarter of this year, won 28% recorded in the same period in 2015. The company owns brands such as Ariel, Pantene, Gillette and Oral-b.
On the same basis of comparison, the net sales of the American multinational retreated 7%, to $ 15.75 billion, impacted by exchange rate changes in markets outside of the United States.
But the costs of sales of products sold fell 11% in the quarter, to $ 7.84 billion. And the operating profit, to $ 3.32 billion, represented an advance of 10% as compared to the same range of 2015.
In the Administration report P&G says the profit increase was guaranteed by efficiency gains and productivity, with the cost-cutting.
The company says that earnings per share in 2016 will be 46% to 51% in 2015. In the first quarter, earnings per share was $ 0.97%-in terms adjusted-, 29% higher than the gain per share of $ 0.75, discharged between January and March last year, and also higher than the estimates of analysts heard by the Thomson Reuters, which projected $ 0.82 per share in adjusted terms.
The P&G said that the fall of 7% in net sales in dollars reflected a foreign exchange loss, 5%, and losses in Venezuela, that determined the other 2%. Already sales rose 1% in organic terms, but retreated 2% in volume.
According to the multinational, sales in four of the five business segments benefited from price increases thanks to releases and product innovations. That''s over compensating for the impact of the devaluation of currencies in markets such as Russia, Brazil and Mexico.
In detail, the P&G segment had net sales 8% smaller in beauty products, 7% in persons and 4% in feminine products, from newborns and family care.