Procter & Gamble just reported its biggest drop in quarterly sales in seven quarters. The company was hurt by slowing demand and a strong US dollar.
Following its earnings call, P&G cut its full-year revenue growth. The company says the strong US dollar is having a 5-6 percentage points effect on its revenue.
P&G shares fell about 1 percent to $74.02 in premarket trading on Friday.
P&G has been focusing on more profitable brands in its arsenal including Gillette, Pampers, and Tide detergent. The company is attempting to maintain market share that it is losing to competitors such as Unilever.
Sales in all of P&G’s product categories fell in double-digit percentage terms in the third quarter. The worst drops occurred in beauty, baby care and grooming products.
P&G generates nearly two-thirds of its revenue outside of North America. A 13% rise in the dollar hurt its international sales.
The net income attributable to P&G rose to $2.60 billion, or 91 cents per share, from $1.99 billion, or 69 cents per share, a year earlier.
Net sales were down 12% to $16.53 billion. Excluding the impact of currency, divestitures and acquisitions, sales fell 1%
Excluding items, the company earned 98 cents per share. Analysts expected earnings of 95 cents per share and revenue of $17.17 billion.