--- title: "Procter & Gamble Reports Latest Quarterly Results: China E-commerce Sales Surge 60% YoY" description: "US consumer goods giant Procter & Gamble Co. reported its fiscal 2017/2018 first-quarter results, with sales slightly below analyst expectations but strong performance in China, where e-commerce sales grew 60% year-over-year. Executives revealed that P&G's annual e-commerce sales in China have exceeded $1 billion." author: "宋凡夫" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2017-10-24" language: "en" canonical: "https://xinjignxiao.com/en/articles/procter-gamble-reports-latest-quarterly-results-china-e-commerce-sales-s-5fd510e2/" markdown: "https://xinjignxiao.com/en/articles/procter-gamble-reports-latest-quarterly-results-china-e-commerce-sales-s-5fd510e2.md" original_source: "https://mp.weixin.qq.com/s/Xh42-yEnPh5KN4d26ch6Fg" translation: "https://xinjignxiao.com/zh/articles/%E5%AE%9D%E6%B4%81%E5%85%AC%E5%8F%B8%E5%8F%91%E5%B8%83%E6%9C%80%E6%96%B0%E5%AD%A3%E5%BA%A6%E8%B4%A2%E6%8A%A5-%E4%B8%AD%E5%9B%BD%E7%94%B5%E5%95%86%E9%94%80%E5%94%AE%E5%90%8C%E6%AF%94%E5%A4%A7%E5%A2%9E60-5fd510e2.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/procter-gamble-reports-latest-quarterly-results-china-e-commerce-sales-s-5fd510e2/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Procter & Gamble Reports Latest Quarterly Results: China E-commerce Sales Surge 60% YoY > US consumer goods giant Procter & Gamble Co. reported its fiscal 2017/2018 first-quarter results, with sales slightly below analyst expectations but strong performance in China, where e-commerce sales grew 60% year-over-year. Executives revealed that P&G's annual e-commerce sales in China have exceeded $1 billion. US consumer goods giant Procter & Gamble Co. (P&G) reported its fiscal 2017/2018 first-quarter results, with sales slightly below analyst expectations but strong performance in China, where e-commerce sales grew 60% year-over-year. Executives revealed that P&G's annual e-commerce sales in China have exceeded $1 billion. For the three months ended September 31, 2017, P&G's key financial metrics were as follows: * Net sales increased 1% year-over-year to $16.65 billion, below the analyst estimate of $16.69 billion. * Organic sales increased 1% year-over-year. * Net income increased 5% year-over-year to $2.85 billion. * Diluted net earnings per share increased 10% year-over-year to $1.06. * Core earnings per share increased 6% year-over-year to $1.09, beating the average analyst estimate by 1 cent. Segment performance: * Beauty: Organic sales increased 5% year-over-year. Driven by growth in China, including accelerated growth of SK-II, skin and personal care organic sales grew at a double-digit rate; hair care organic sales grew at a low single-digit rate. * Grooming: Organic sales increased 6% year-over-year. A decline in shaving care sales was partially offset by growth in home appliances. * Health Care: Organic sales increased 1% year-over-year. Oral care organic sales grew at a low single-digit rate; personal health care organic sales declined at a low single-digit rate. * Fabric and Home Care: Organic sales increased 2% year-over-year, driven by growth in fabric care. * Baby, Feminine and Family Care: Organic sales decreased 1% year-over-year. Baby care organic sales declined at a mid-single-digit rate. P&G CFO Jon Moeller said: "The quarter was somewhat challenging, with higher commodity costs and natural disasters impacting us, and transportation costs were also relatively high in many regions." This quarter's results also serve as a strong rebuttal to activist investor Nelson Peltz, who holds a $3.5 billion stake in P&G and sought a board seat. Peltz had criticized P&G for underperformance, lagging the market, losing market share, and being overly bureaucratic. P&G stated that preliminary voting results on October 10 were insufficient to grant him a seat, but Peltz has not given up. Razor manufacturers such as Unilever's Dollar Shave Club, Harry's, and Edgewell have taken some business from P&G (represented by Gillette). In response, P&G has cut prices by about 12% to remain competitive, but price cuts, poor product mix, and the Brazilian recession led to a double-digit decline in organic sales for shaving care. RBC analyst Nik Modi said: "Grooming is in a trough." Stifel analyst Mark Astrachan noted that although P&G has made some adjustments (including price cuts), its product pricing remains too high compared to others. ##### China is a key focus for future growth In the first quarter of fiscal 2018, P&G's sales in China, its second-largest global market, grew 8% organically year-over-year, with e-commerce sales surging 60%. According to P&G China executives, P&G China's annual e-commerce sales have exceeded $1 billion. In the quarter, Olay brand sales in China grew at a mid-single-digit rate, while SK-II brand sales surged 40% year-over-year. P&G expects China sales to grow at a mid-single-digit rate for the fiscal year. Moeller said that six of the seven product categories P&G sells in China improved in the quarter. This turnaround is significant, as in fiscal 2016, P&G's sales in China declined 5% organically, mainly due to a gap in the diaper category. Sumeet Vohra, P&G's Vice President of Hair Care for Greater China, noted that the region is the world's largest hair care market, with the global retail hair care market valued at $8 billion. Vohra said P&G's growth in the region this year will be at a mid-single-digit rate, emphasizing that four of China's top five hair care brands belong to P&G. Despite a $100 million loss from hurricanes in the southern US, P&G maintained its fiscal 2018 outlook, expecting organic sales growth of 2-3% and core earnings per share growth of 5-7% year-over-year. _Appendix: Screenshot of P&G's official press release_ **2017 (3rd) FMCG + Internet Conference** will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecosystem" and invite **1,000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions** to explore a new chapter of cross-industry integration! Click the links below to review the highlights of the first and second FMCG + Internet conferences: [2016 "FMCG + Internet" Summit Forum]() -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671