2 August 2019 - Deborah Wilkes
Procter & Gamble (P&G) said worldwide sales at its Personal Health Care business had increased by "mid teens" on an organic basis in the three months ended 30 June 2019.
Commenting on the rise, the company said it was due to "innovation, a late season increase in cough and cold incidence, and favourable mix due to the disproportionate growth of developed regions and respiratory products which have higher than category-average selling prices".
The US-based company pointed out sales had risen in both developed and developing markets.
Acquired Merck Consumer Health
The "mid teens" rise on an organic basis excludes the impact of portfolio and currency changes. In November 2018, P&G completed its EUR3.4 billion (USD3.9 billion) acquisition of the Consumer Health business of Germany's Merck (click here to read the News story).
P&G's Health Care segment – which houses both the Personal Health Care and Oral Care businesses – recorded worldwide sales up by 13% as reported to USD2.04 billion in the three months ended 30 June 2019.
Excluding the impact of portfolio and currency changes, Health Care's sales were up by 10% on an organic basis.
Health Care's earnings from continuing operations before income taxes were up by 24% to USD413 million, and net earnings from continuing operations were up by 42% to USD309 million.
P&G's total sales up by 7%
The Health Care segment accounted for 11.9% of P&G's total worldwide sales, which were up by 7% on an organic basis to USD17.1 billion. Sales as reported were up by 4%.
Chairman, president and chief executive officer David Taylor said the result was P&G's "strongest quarter of organic sales growth in well over a decade".
Taylor added that the company would continue to "focus on superiority, productivity, constructive disruption and improving P&G's organisation and culture".
Chief financial officer Jon Moeller noted that P&G's e-commerce sales were "well over USD5 billion" for the 12 months ended 30 June 2019, representing around 8% of the company's total.
The three months ended 30 June 2019 was the fourth quarter of P&G's financial year.