Procter & Gamble’s Fiscal Fourth-Quarter Results Beat Expectations

Procter & Gamble’s (PG) fiscal fourth-quarter results came in ahead of analysts’ expectations as the consumer-products maker said its organic sales growth got a benefit from higher prices and positive mix.

Net sales rose 4% to $17.1 billion, ahead of the consensus on Capital IQ for $16.9 billion. Excluding the impact of foreign exchange, acquisitions and divestitures, organic sales rose 7% with volume up 3%, the Cincinnati-based maker of Tide laundry soap and Pampers diapers said on Tuesday.

Higher prices added three percentage points to sales on an organic basis, the company said.

“Positive mix impact was a 2% help to organic sales due to strong growth in developed markets and disproportionate organic growth of the premium SK-II brand and the Personal Health Care category,” P&G said. SK-II offers higher-cost skin-care products like facial treatments and moisturizers.

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The company’s shares were up 3.4% in early trading.

“We met or exceeded each of our going-in core targets for sales, profit and cash in fiscal 2019,” said David Taylor, the company’s chief executive. “We built sales, market share and profit margin momentum throughout the year, ending with our strongest quarter of organic sales growth in well over a decade.”

In the quarter, net sales for the health care segment jumped 13% with gains in oral care, while fabric and home care sales rose 5%. Beauty was up 3% with mid-teens increases in skin and personal care organic sales. Baby, feminine and family care sales rose just 1% and grooming fell 3%.