growth. This marked the 21st consecutive quarter in which the company
delivered at or above target organic sales growth.
-- Net earnings grew 14 percent to $3.1 billion behind solid sales growth
and profit margin improvement. Earnings per share increased 16 percent
to $0.92 for the quarter, including a one-time tax benefit of $0.02 per
share. EPS increased 14 percent excluding the impact of the one-time
Key Financial Highlights
Net sales for the quarter increased eight percent to $20.2 billion behind five percent volume growth and a three percent favorable foreign exchange impact. Each segment delivered year-on-year sales growth of six percent or higher behind continued success on product initiatives. A number of the company's key brands, including Charmin, Dolce & Gabbana, Downy, Febreze, Gillette Fusion, Head & Shoulders, Hugo Boss, Pampers, Pringles and Tide delivered double-digit sales growth. Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange, increased five percent during the quarter.
Diluted net earnings per share increased 16 percent to $0.92, including a two percent one-time tax benefit related to a change in the German statutory tax rate. Net earnings increased 14 percent to $3.1 billion behind higher operating profit. Operating profit was up nine percent driven by sales growth and a 30-basis point margin improvement.
Gross margin was up 10-basis points to 52.9% of net sales during the quarter. Higher commodity costs had a negative impact of approximately 80- basis points. These were more than offset by volume leverage, cost savings projects and pricing.
Selling, general and administrative expenses (SG&A) were 31.0% of net
sales, 20-basis points lower than the prior year period. Overhead spending
as a percent of net sales was down due to overhead cost controls, Gillette
|SOURCE The Procter & Gamble Company|
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