Procter & Gamble’s (PG) top line has taken a hit due to currency fluctuations. However, the company’s organic sales have been impressive. Procter & Gamble’s organic sales have grown at a healthy rate in the first nine months of fiscal 2019. The company posted record organic sales during the last reported quarter.
Procter & Gamble’s organic sales increased 4% in the first half of 2019. The organic sales rose 5% during the third quarter, which is impressive given the heightened competitive environment. Volume growth, higher net price realization, and a favorable mix drove the company’s organic sales. The US and China recorded stellar growth during the last reported quarter.
Higher net price realization and innovation have been supporting US household and personal care product manufacturers’ organic sales growth. Colgate-Palmolive (CL) posted 3% growth in organic sales during the last reported quarter, which reflected higher pricing. Higher pricing also drove 3% growth in Kimberly-Clark’s (KMB) organic sales in the previous quarter. Church & Dwight’s (CHD) organic sales rose 4.5%, while higher net pricing supported Clorox’s (CLX) organic sales.
We expect Procter & Gamble to continue to report year-over-year growth in organic sales in the near term due to higher net pricing, a favorable mix, and improved volumes. However, higher pricing amid heightened competitive activity in the grooming and baby care segment is expected to hurt the volumes and the overall organic sales growth rate.