Procter & Gamble (NYSE:PG) has posted better-than-expected fiscal third-quarter earnings, helped by sales of Olay Skin care and other personal care products, hours after announcing it will widen its reach in Europe by acquiring the consumer health division of Merck for €3.4bn (US$4.2bn).
The deal with Merck, which is headquartered in Darmstadt, Germany, will give Procter & Gamble access to Merck’s leading brands, which include Neurobion, Dolo Neurobion, Femibion, Seven Seas and Kytta and broaden its offerings in the over-the-counter pharmaceutical market.
Read: Procter & Gamble acquires German Merck’s consumer health unit for US$4.2bln
Zeroing in on the numbers, P&G’s net income fell slightly to US$2.5bn or 95 US cents per share in the three months ended March 31, down from US$2.52bn or US$0.93 in the year-ago quarter. Excluding items, the consumer goods giant earned US$1 per share, which beat the US$0.98 which had been expected by Wall Street analysts.
“We delivered modest top and bottom line growth in a challenging macro environment in the third quarter, said David Taylor, chairman, president and chief executive officer. “We have large businesses in several difficult markets. The eco systems in which we operate around the world are being disrupted and transformed.”
Fueled by demand for Olay skin care products and its SK-11 brand, its net sales jumped 4.3% to US$16.3bn from the year-ago quarter, which came in above Wall Street analysts’ forecast of US$16.2bn.
P&G is maintaining its full-year sales guidance at 2 to 3% for this fiscal year, but its numbers will likely fall at the low end of the road.
In pre-market trade, P&G’s shares were down 1.79% at US$76.80.