The Procter & Gamble Company (PG) has reported 4.34 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $2,714 million, or $0.96 a share in the quarter, compared with $2,601 million, or $0.91 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2,905 million, or $1.03 a share compared with $2,800 million or $0.98 a share, a year ago.

Revenue during the quarter went down marginally by 0.05 percent to $16,518 million from $16,527 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 50.95 percent. Total expenses were 77.17 percent of quarterly revenues, down from 77.20 percent for the same period last year. This has led to an improvement of 3 basis points in operating margin to 22.83 percent.

Operating income for the quarter was $3,771 million, compared with $3,768 million in the previous year period.

However, the adjusted operating income for the quarter stood at $3,860 million compared to $3,840 million in the prior year period. At the same time, adjusted operating margin improved 13 basis points in the quarter to 23.37 percent from 23.23 percent in the last year period.

"Our first quarter results mark a good start to the fiscal year," said chairman, president and chief executive officer David Taylor. "We delivered broad-based organic sales growth improvement across product categories and markets, as well as strong cost savings. Earlier this month, we completed the last major step in P&G’s portfolio transformation with the Beauty Brands divestiture to Coty Inc. We are now focusing all our efforts on 10 large, structurally attractive categories where P&G holds leading positions. We're pleased with the progress we're making, but there is still more work to do to get back to the levels of balanced top- and bottom-line growth and cash generation that will consistently put P&G shareholder value creation among the best in our industry."
 

For the inancial year 2017, Procter & Gamble Co projects revenue to grow at 1 percent.

The company has spent $2,121 million cash to meet investing activities during the quarter as against cash outgo of $546 million in the last year period. It has incurred capital expenditure of $501 million on net basis during the quarter, up 1.42 percent or $7 million from year ago period.

The company has spent $507 million cash to carry out financing activities during the quarter as against cash outgo of $1,971 million in the last year period.

Cash and cash equivalents stood at $7,456 million as on Sep. 30, 2016, down 3.23 percent or $249 million from $7,705 million on Sep. 30, 2015.
 

Working capital drops significantly
The Procter & Gamble Company has witnessed a decline in the working capital over the last year. It stood at $2,770 million as at Sep. 30, 2016, down 31.66 percent or $1,283 million from $4,053 million on Sep. 30, 2015. Current ratio was at 1.09 as on Sep. 30, 2016, down from 1.13 on Sep. 30, 2015.

Cash conversion cycle (CCC) has increased to 43 days for the quarter from 3 days for the last year period. Days sales outstanding were almost stable at 27 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 28 days for the quarter compared with 60 days for the previous year period. At the same time, days payable outstanding went up to 98 days for the quarter from 90 for the same period last year.