P&G organic sales increase 3% in Q3 FY'13

Non-core items include restructuring charges of $0.03 per share and a $0.08 per share charge from the balance sheet revaluation resulting from the devaluation of the Venezuelan currency in February.

Organic sales grew three percent. Net sales were $20.6 billion, an increase of two percent versus the prior year period including a negative one percent impact from foreign exchange.

P&G held or grew market share in businesses representing over 50 percent of sales in the January - March quarter, as measured on a constant currency value basis. In the U.S. market, P&G held or grew value share in businesses representing two-thirds of sales.

“We delivered another quarter of steady progress,” said Chairman, President, and Chief Executive Officer, Bob McDonald. “Top-line growth was in line with our expectations. Market shares improved broadly.

"Strong cost savings enabled us to exceed our outlook on the bottom line. We increased our dividend earlier this month, and we are now projecting to repurchase $6 billion in stock, which is at the high end of our estimated range. We expect further top-line improvement in the fourth quarter, driven by innovation and portfolio expansion, enabled by continued productivity improvement.”

Executive Summary
- Organic sales increased three percent for the quarter.
- Core net earnings per share increased five percent to $0.99.
- Core operating profit margin increased 10 basis points, including 260 basis points of productivity improvements and cost savings.
- Core gross margin increased 20 basis points. Reported gross margin, including non-core restructuring charges, increased 50 basis points.
- Core selling, general and administrative expenses (SG&A) as a percentage of net sales increased 10 basis points. Reported SG&A costs, including non-core items, increased 40 basis points as a percentage of sales.
- Operating cash flow was $3.9 billion for the quarter.
- The Company repurchased $1.0 billion of shares during the quarter and returned $1.6 billion of cash to shareholders as dividends.
- Earlier this month, P&G announced it increased the quarterly dividend by seven percent.
- The Company raised its share repurchase target to approximately $6 billion of stock for the fiscal year, the high end of its stated target range of $5 billion to $6 billion.