The company received lower than expected sales and income revenue for the 9th straight financial quarter..
Procter and Gamble Co were seen to have announced the third quarter earnings for the fiscal year of 2015 on April 23 2015. The company received a lower than expected earnings report which has disappointed the investors and analysts alike. This is the fifth quarter in line in which a drop has been reported by the company. One of the main reasons of the plunge was that the dollar has been gaining strength for quite some time now which has resulted in the demand of the firm’s manufactured products decreasing.
Procter and Gamble sales have been dominant over the other home products manufacturers for quite a long time which has made it the largest supplier of household goods. The company receives a sizable amount of sales revenue from outside of the United States which is why the increasing dollar rate in the global market has negatively affected the company.
According to the earnings reports call made by Procter and Gamble, it became clear that a drop of around 8.3% was witnessed by the company in 3QFY15. It was discussed in the earnings call that the company is making plans of increasing its business by establishing around eighteen new plans all over the world to work towards minimizing the threat that it has to face due to the fluctuating value of the dollar. On the other hand, as long as the devaluation recovery is concerned, the company has managed to take out 2/3 of the dominant pricing losses but this time around; the recoveries are predicted to be lesser than before as the pressure of the competitive companies has been increasing on a large scale.
The sales were seen to have seen a significant dip for the 3rd quarter of the fiscal year coming around at $18.14 billion. Taking the beauty products manufactured by the firm, a fall was recorded which made the quarter the ninth one of its kind, bringing the sales revenue of PNG down by an extensive amount.
Net income of the firm resulted in being $2.15 billion, with per share income of 75 cents. As for the EPS, it came around 92 cents which conveniently met the expectations of the analysts firms.
The share price is currently trading at $80.5 while P&G’s market cap stands at $224.39 billion.