P&G's Lafley: Company delivered fiscal year commitments

CINCINNATI — Despite a challenging retail environment, Procter & Gamble delivered “top and bottom line commitments for the fiscal year,” said chairman, president, and CEO A.G. Lafley



For fiscal year 2014 core earnings per share of $4.22, an increase of 5% versus the prior year. Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 14%. Diluted net earnings per share were $4.01, an increase of 4%. Organic sales grew 3%, driven by 3% unit volume growth. Net sales were $83.1 billion, an increase of 1% versus the prior year, including a negative two-percentage point impact from foreign exchange.



For the fourth quarter, core earnings per share were 95 cents, an increase of 20% versus the prior year period. Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 25%. Diluted net earnings per share were 89 cents, an increase of 39% percent. Organic sales grew 2%, including a two-percentage point benefit from pricing. Shipment volume was in-line with prior year levels.



Net sales were $20.2 billion, a decrease of 1% versus the prior year period, including a negative two-percentage point impact from foreign exchange and a modest negative impact from minor divestitures, the company stated.



“We met our objectives in a very difficult operating environment, delivered strong constant currency earnings growth, and built on our strong track record of cash returns to shareholders. Still, we have more work to do to deliver the profitable sales growth and strong cash productivity we are capable of delivering. We will discuss our going-forward strategy and plans to further strengthen our results during our earnings call this morning,” Lafley stated.



For fiscal 2014, beauty segment organic sales were flat with gains from market growth and product and commercial innovation in hair care, deodorants and personal cleansing offset by sales decreases in salon professional and skin care from competitive activity and market contraction.



Grooming segment organic sales increased 3% due to higher pricing and innovation on blades and razors and appliances, which was partially offset by negative geographic and product mix from disproportionate growth in developing markets and disposables, P&G stated.