P&G Continues To Expect Strong Core Operating Profit Growth For FY16

(RTTNews) - The Procter & Gamble Company (PG) maintained its fiscal 2016 guidance for Core earnings per share of slightly below to up mid-single digits versus fiscal 2015 restated Core EPS of $3.76. P&G said it continues to expect strong core operating profit growth for the fiscal year and will not cut smart investments to offset foreign exchange impacts.

The company clarified that its guidance for fiscal 2016 core EPS is relative to fiscal 2015 results, revised for the impacts of moving earnings from the Beauty categories it plans to exit to discontinued operations. Fiscal year 2015 Core EPS, which is based on earnings from continuing operations, have been revised from the $4.02 level originally reported to $3.76 per share as a result of this change.

Including the impacts of non-Core restructuring costs and discontinued operations, P&G continues to expect all-in GAAP EPS to be up 53% to 63% versus fiscal year 2015 all-in GAAP EPS of $2.44.

P&G maintained its outlook for organic sales of in-line to up low single digits versus fiscal 2015. The company expects all-in sales to be down high single digits versus fiscal 2015 results.

The Company said increased volatility in market growth and foreign exchange rates have made earnings results more difficult to forecast.

For the first-quarter, the company reported core earnings per share of $0.98, a decrease of one percent from prior year. Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 12% for the quarter.

Net sales in the first quarter were $16.5 billion, a 12% decrease, including a negative nine percentage point impact from foreign exchange and two percentage point impact from the Venezuela deconsolidation and minor brand divestitures. Organic sales declined one percent.