THE WHAT? Procter & Gamble has reported its results for the second quarter of fiscal 2020. The company saw organic sales grow 5 percent and net earnings rise an impressive 16 percent versus the prior year period.
THE DETAILS Beauty was the company’s strongest performing category in organic sales terms, up 8 percent over the prior year, while grooming put on 4 percent and health care grew 7 percent.
The company revealed that skin care and personal care both increased organic sales in the double digits, driven by innovation and increased pricing. Hair care mustered a mid-single digit rise thanks to premium innovation.
The US FMCG giant has raised its outlook for fiscal 2020 all-in sales growth from a range of 3 to 5 percent to a range of 4 to 5 percent, and expects core earnings per share growth to come in at between eight percent and eleven percent versus the five percent to ten percent range previously forecast.
THE WHY? David Taylor, Chairman, President and CEO explained, “We delivered another strong quarter of organic sales growth, core earnings per share and cash returned to shareowners. Our strong first half results enable us to further increase our outlook for the full fiscal year across each of these metrics and to increase our commitment of cash return to shareowners. Our focus remains on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.”