P&G sales slip as strong dollar bites

Procter & Gamble posted a slightly steeper than expected fall in quarterly sales, as a strong dollar and a “slowdown in market growth” weighed on the US consumer products group.

The company behind brands like Tide detergent and Gillette razor blades said its sales slipped 1 per cent from the previous year to $15.6bn, short of expectations of $15.7bn. Currency headwinds knocked the figure down by 2 percentage points.

“The third quarter macro environment was characterized by a slowdown in market growth, continued geopolitical disruptions and foreign exchange challenges,” said David Taylor, chief executive.

Net sales were down in the beauty, grooming, fabric and home care and baby, feminine and family care lines, but were up in the healthcare unit.

Profits fell by 8 per cent to $2.56bn. Core earnings per share, which are an adjusted figure watched by Wall Street analysts, were 96 cents, above expectations of 94 cents.

P&G’s shares were little changed in pre-market trading. They were up 7 per cent year-to-date as of Tuesday’s close.