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P&G's 2017 Growth Outlook and Strategy

P&G saw organic sales and volume growth across all segments in the recent quarter. The health care segment saw the strongest growth of 5% due to increased marketing spending in oral care and a late cough and cold season. P&G was also able to raise prices in oral care and personal health care. The CEO commented that China division sales are sequentially improving and more country-specific innovations are expected in the next 12 to 18 months. For fiscal 2017, P&G projects organic sales growth of 2% but also expects headwinds from foreign exchange and brand divestitures.

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44 views1 page

P&G's 2017 Growth Outlook and Strategy

P&G saw organic sales and volume growth across all segments in the recent quarter. The health care segment saw the strongest growth of 5% due to increased marketing spending in oral care and a late cough and cold season. P&G was also able to raise prices in oral care and personal health care. The CEO commented that China division sales are sequentially improving and more country-specific innovations are expected in the next 12 to 18 months. For fiscal 2017, P&G projects organic sales growth of 2% but also expects headwinds from foreign exchange and brand divestitures.

Uploaded by

Angela A. Călin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

CEO David Taylor said in a statement.

"We grew organic volume and sales in all


reporting segments. We increased investments in innovation and advertising,
funded by strong productivity improvement."
P&G saw the strongest organic volume growth in its health-care segment, where
this metric rose 5 percent driven by increased marketing spending in oral care
and a late cough and cold season. The company also was able to raise prices in
both oral care and personal health care.
"We see it sequentially improving," Taylor said of the China division, noting that
the company expects to see more innovation designed specifically for the country
in the next 12 to 18 months.
"Moving from one child households to two child households, moving from
manufacturing-based economy to hopefully more of a consumption-based
economy, it's a very important market for us." Moeller told CNBC. "We have a
little bit of work to do to get our portfolio balanced and get in the right channels
of distribution, but...we're making strong progress."
Outlook for 2017

The company projects that organic sales will grow 2 percent for fiscal 2017, but will likely
face headwinds from foreign exchange and brand divestitures.
"Looking forward, we're committed to continued productivity improvement and cost savings
that provide the fuel for innovation and investments needed to accelerate and sustain faster
top-line growth," Taylor said. "We expect fiscal 2017 to mark another significant step toward
our goal of balanced growth and value creation and total shareholder return in the top third of
our competitive peer group."
The company forecasts its fiscal 2017 GAAP earnings per share will include about 10 cents
per share of non-core restructuring costs and a gain from the divestiture of 41 beauty brands
to Coty slated for October 2016.
On average, analysts expect the P&G's revenue to grow 1 percent in 2017, versus the prior
year, according to Thomson Reuters.
Shares in P&G are up nearly 13 percent year over year, outpacing the Dow Jones industrial
average, which is up about 4 percent over the same time period.

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