P&G sees organic sales growth from current quarter
By Yashaswini Swamynathan
(Reuters) - Procter & Gamble Co (PG.N: Quote) reported a higher-than-expected quarterly profit and said it expected organic sales to grow from the current quarter as it moves through a "portfolio cleanup."
The company has been shrinking the number of its brands to focus on more profitable lines such as Gillette shaving products, Pampers diapers and Tide detergent.
Shares of P&G, which sold 43 brands to Coty Inc (COTY.N: Quote) in July, rose as much as 4.8 percent on Friday.
P&G expects organic sales growth "to further strengthen in the back half," Chief Executive A.G. Lafley said. Chief Financial Officer Jon Moeller said pricing was expected to be a "bigger driver" of sales this year.
Some analysts, however, said the company needed to "decentralize" its operations to move faster on trends in emerging markets such as China.
"The more strong people they have with a local understanding of running their business, the better chances they have of not being late with their innovation and marketing strategy," CLSA analyst Caroline Levy said.
"They've missed huge trends," Levy said, notably a move to online shopping and the launch of new diaper products in China.
P&G, which gets nearly two-thirds of its revenue from markets outside North America, reported its seventh straight quarter of sales decline as demand fell further across product categories and a strong dollar eroded international sales. Continued...