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Procter & Gamble with decrease of profits

The American company Procter & Gamble, which is one of the largest producers of consumer goods in the world, said its profit fell by one percent annually for the first quarter, although its sales volume grew by 7 per cent same period. The reason for this lies in the larger its advertising costs, announced Wall Street Journal. The net profits of Procter & Gamble for the three months to the end of March amounted to 2.59 billion dollars, or 83 cent a share, compared with a positive financial result of 2.61 billion USD or 84 cents a share, a year ago. After excluding one-off income and expenses, earnings per share for the first three months of this year amounted to 89 cents. Revenues for the manufacturer of consumer goods increased by 7% annually to 19.2 billion dollars. Organic sales, which exclude the effect of exchange rates and acquisitions, reported annual growth of 4 per cent. The company management expects that earnings per share for this year will rise to 3.62 to 3.68 dollars. Procter & Gamble reduced prices on many of its products and launched many new products to increase its sales volume last year.
Shares of Procter & Gamble rose 2.2 percent to 61.78 dollars on the New York Stock Exchange. The market capitalization of the company that participates in the index Dow Jones IA, has risen by 22.5 percent over the past 12 months to 179.45 billion dollars.