Procter & Gamble sales fall for sixth straight quarter

Company also expects sales to fall in the low-to-mid single digits next year due to the strong dollar

Procter & Gamble Co , the world's largest consumer products maker, reported its sixth straight fall in quarterly sales, as the stronger dollar continued to weigh on the value of sales from overseas markets.

Shares of the maker of Pampers diapers and Tide detergent were down marginally at $80.43 on Thursday.

P&G also said it expected sales to fall in the low-to-mid single digits next year due to the strong dollar.
 

 

The company said on Tuesday that David Taylor would replace A.G. Lafley as chief executive in November, as it looks to reverse the trend of falling sales.

P&G has sold off about 50 brands since 2014 in an attempt to streamline its portfolio and focus on faster-growing product lines.

The latest round of divestitures comprised 43 brands, including Wella and Clairol hair care products, which P&G sold to perfume maker Coty Inc for $12.50 billion this month.

Revenue fell 9.2 percent to $17.79 billion in the fourth quarter ended June 30 from a year earlier, as the company recorded a 9 percentage point hit from the strong dollar.

Analysts on average were expecting revenue of $17.98 billion, according to Thomson Reuters I/B/E/S.

The currency has risen about 20 percent in the 12 months through June 30, reducing the value of overseas sales when they are translated back into dollar terms.

P&G, which gets roughly two-thirds of its revenue from international markets, has been raising prices to offset the impact of the dollar, but customers have been turning to cheaper local alternatives as a result.

Peer Colgate-Palmolive Co reported its fourth straight quarter of falling sales on Thursday and said the strong dollar was the main reason for the decline.

Net income attributable to P&G fell 80 percent to $521 million, or 18 cents per share in the fourth quarter, the company said.

P&G recorded a $2.03 billion charge in the quarter for a change in the accounting method of its Venezuelan operations, reflecting its inability to convert currency or pay dividends.

Excluding items P&G earned a profit of $1 per share, beating the average analyst estimate of a profit of 95 cents.