[caption id="attachment_85196" align="aligncenter" width="720"] Source: Company reports/Coresight Research[/caption]   3Q19 Results P&G reported net sales of $16.5 billion for the three months ended March 31, 2019, up 1.1% year over year and beating the consensus estimate of $16.3 billion. The gross margin on net sales increased 30 basis points to 48.8% and the operating margin fell 10 basis points to 19.6%. Diluted non-GAAP EPS was $1.06, up 6.0% versus last year and beating the consensus estimate of $1.04. Management said the result was driven by the company’s focus on superiority, productivity and improvement in its organizational culture. Segment Review P&G’s strong results were driven by its beauty, healthcare and fabric and home care segments.

• Beauty Segment: The Beauty segment recorded net sales of $3.1 billion, up 4.3% year over year. Organic sales increased 9% over last year due to premium innovation in skin and personal care, positive product mix, increased pricing for the SK-II brand and increased pricing for hair care products.
• Grooming Segment: The grooming segment recorded net sales of $1.4 billion, down 8.1% year over year. Organic sales decreased 1% over last year due to negative mix effects in some categories and volume declines.
• Health Care Segment: The health care segment recorded net sales of $2.1 billion, up 9.4% year over year. Organic sales increased 5% over last year due to the addition of the Merck OTC business and innovations in premium toothpaste and toothbrushes, which drove volume growth.
• Fabric and Home Care Segment: The fabric and home care segment recorded net sales of $5.4 billion, up 2.3% year over year. Organic sales increased 7% over last year due to innovation, increased pricing and positive product mix effects.
• Baby, Feminine and Family Care Segment: The baby, feminine and family care segment recorded net sales of $4.4 billion, down 2.3% year over year. Organic sales increased 2% versus the prior year, driven by increased pricing and positive product mix of premium feminine care products, innovations and increased pricing of family care products.

Outlook For FY19, the company expects to report net sales growth of up to 1%, “solid” organic sales growth of 4% and an increase of 3% to 8% in diluted non-GAAP EPS.