Procter & Gamble nudges higher despite sales drop

Procter & Gamble (NYSE:PG), the world's biggest consumer products firm, reported its biggest sales drop in seven quarters but shares nudged higher after hours. Net sales came in at US$16.5 billion in the three months to September, down 12% compared to last year, mainly due to significant foreign exchange impacts. Organic sales decreased one percent at the firm, which is behind the shaving brand Gillette and Pampers nappies. Core earnings per share (EPS) were US$0.98, a decrease of one percent. The group also also cut its full-year revenue growth forecast, saying it now expected the strong dollar to have a bigger impact of 5-6 percentage points rather than the 4-5 percentage points expected earlier. Depite this, shares added 3.01% to US$77.10 in after hours trading. The firm is trying to turn around its fortunes and leaving behind almost 100 brands to focus on 65 core brands. Chairman and chief executive A.G Lafley told investors on Thursday: "Top line results were soft, as expected, given significant foreign exchange impacts, our deliberate choices to exit unprofitable businesses and the early stage of the improvement plans we’re implementing in our largest categories and markets. "We continue to make strong progress on productivity savings, which will fuel smart investments in top-line growth. "We expect second quarter organic sales growth to be positive and to further strengthen in the back half as we invest to build awareness and trial of our consumer-preferred products and brands.”