Procter & Gamble has reported a second quarter fiscal year 2014 net sales of $22.3 billion, unchanged versus the prior year period, including a negative three percentage point impact from foreign exchange.

The company’s net income of $3.43 billion, or $1.18 a diluted share, was 15.5 percent below the $4.06 billion – or $1.39, recorded in the year-ago period. Revenues rose 0.5 percent to $22.28 billion, just below the $22.33 billion expected by analysts.

P&G’s beauty business registered a 6 percent increase in net income, to $927 million, and a 2 percent increase in net income before taxes, to $1.16 billion, despite a 2 percent decline in revenues, to $5.28 billion.

“P&G’s second quarter results came in as we expected,” said Chairman, President, and Chief Executive Officer A.G. Lafley. “We’re on-track to deliver our objectives of 3-4% organic sales growth and 5-7% core EPS growth for the fiscal year. We expect strong earnings growth in the second half of the fiscal year driven by solid top-line growth, moderating headwinds from foreign exchange, and productivity savings that build throughout the year.”