Executive Summary

• Procter & Gamble (P&G) reported fiscal 4Q16 core EPS of $0.79, beating the consensus estimate of $0.74. Revenues were $16.1 billion, a decrease of 3% versus the year-ago period. The company cited foreign currency exchange, Venezuelan deconsolidation and minor brand divestitures as the reasons for the decrease.
• The Health Care segment was the strongest performer out of P&G’s five business segments, posting a 5% increase in volume, a 2% increase in price, a 6% increase in net sales, and an 8% overall increase in organic sales. Organic sales in Oral Care were up due to increased marketing, innovation and increased pricing. Personal Health Care organic sales increased due to higher prices in developing markets and a late cough and cold season.
• P&G is forecasting organic sales growth of approximately 2% for FY17. It expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by about one percentage point. The company estimates total growth of approximately 1% for FY17.