Procter & Gamble’s sales dip again on softer volume, unfavourable exchange rates

The Procter & Gamble Company (P&G) is focused on providing consumer packaged goods.

The producer of such household items as Crest toothpaste and Tide detergent said earnings for the quarter ending June 30 were $521 million, down 79.8 percent from the year-ago period.

“Much of the sales growth is ahead of us”, P&G Chief Executive A.G.

Procter & Gamble Co (NYSE:PG)’s stock had its “buy” rating reiterated by investment analysts at Sanford C. Bernstein in a note issued to investors on Tuesday, Marketbeat reports. He said the company has “a strong lineup of products” that will be rolled out over the coming months and years that should help generate sustainable growth.

Procter & Gamble, based in Cincinnati, has been trying to boost its results by cutting costs and shrinking its portfolio of products to concentrate on the 10 categories and about 65 brands where it says it is strongest.

Investors’ patience, however, is wearing thin. P&G shares declined almost $3 in the first 15 minutes of trades, falling to $77.65.

Company has received recommendation from many analysts. BNP Paribas raised their target price on shares of Procter & Gamble Co from $83.00 to $85.00 and gave the company an “underperform” rating in a research note on Monday, July 20th.

During Lafley’s second term as CEO, P&G announced plans in February to divest, discontinue or consolidate more than 100 non-core brands in a bid to become more nimble and improve its profitability as well as margins. Mr. Taylor didn’t speak on Thursday’s call with analysts.

In June, P&G’s sales in Russian Federation plunged 57%, as the devaluation of the ruble led P&G to raise prices to avoid unprofitable sales in a market where it has been the biggest player, said Jon Moeller, the company’s chief financial officer. The shares were sold at an average price of $79.50, for a total value of $4,014,750.00. Its health care organic sales gained 4 percent for fiscal year 2015, while fabric care and home care organic sales rose 2 percent. For fiscal 2016, P&G expects core EPS to rise in the mid-single digit percentage range from 2015’s $3.77.

There were some bright spots in P&G’s results. Lafley for the second time, effective November 1.

Meanwhile, in a bid to reverse Olay’s declining sales, Mr. Lafley said the brand has significantly reduced its assortment of products and simplified its in-store shelf displays, and is rolling out a new brand campaign in the coming months. On the economic calendar, we point out the GDP report, the weekly jobless claims, the EIA natural gas report, and the Fed balance sheet. Sales fell 9% to $17.8 billion, just shy of the FactSet consensus of $17.9 billion, with unfavorable currency movements reducing sales by nine percentage points. A few other companies, including Ford Motor Co. and Jarden Corp., made similar accounting changes earlier this year.