P&G has reported a 7 percent drop in net sales to US$15.8 billion for the third quarter of fiscal 2016, attributed to a 5 percentage point negative impact from foreign exchange, a 2 percentage point impact from the Venezuela deconsolidation and a 1 percentage point impact from minor brand divestitures. Organic sales were up 1 percent. The company’s diluted net earnings rose 29 percent to US$0.97 per share.

“We continue to make progress on the transformations we are undertaking to return P&G to balanced top and bottom-line growth and maintain strong cash generation,” said President and Chief Executive Officer David Taylor. “We achieved a significant milestone this quarter in the transformation of the product portfolio with the sale of the Duracell business. We delivered another strong quarter of productivity improvement and cost savings, and we increased investments in innovation, advertising and selling to enhance our long-term prospects for faster, sustainable top-line growth and value creation.”

Organic sales for the beauty segment grew one percent compared to the same period in fiscal 2015, pushed by strong performances by the personal care sub-sector and the SK-II brand. Olay, however, continues to flounder. Both Pantene and Head & Shoulders gained market share in the US, although their growth was offset by declines in other brands, resulting in unchanged organic sales for the hair care segment as a whole.

P&G said it is maintaining its outlook for full year 2016, predicting organic sales growth in the low single digits and an all-in sales decline in the high single digits.