The Procter & Gamble Company’s fiscal second quarter sales fell 3% to $20.4 billion. The company attributed the decline to unfavorable foreign exchange and lower volume. Beauty net sales fell 4% to $4.9 billion, however, organic sales were in line with the previous year period. Retail hair care volume grew low-single digits behind solid growth in developing regions.
The company said every major retail hair care brand, including Pantene, contributed to volume growth led by mid-single-digit or higher growth of Head & Shoulders, Herbal Essences, Rejoice and Nice ‘N Easy. Professional Hair Care volume declined mid-single-digits primarily due to market contractions, according to P&G.
Personal cleansing volume decreased by high single-digits primarily due to trade inventory reductions and market contractions. Volume in skin care decreased mainly due to the divestiture of Noxzema, according to the company.
Prestige fragrances volume decreased high-single-digits due mainly to trade inventory reductions, market contractions and a shift in initiative timings to the second half of fiscal 2009, partially offset by market share gains.
Net earnings declined 10% to $799 million primarily due to a reduction in net sales and lower operating margin from higher commodity costs.
Oral care volume decreased primarily due to trade inventory reductions of Crest. Fabric care and home care net sales decreased 4% to $5.8 billion for the quarter.
Fabric care volume decreased primarily due to a double-digit reduction of Tide shipments from trade inventory reductions and share declines.
Home care volume was down low-single digits as growth of air care was more than offset by price-driven shipment declines of dish care and surface care. Baby care and family care net sales increased 3% to $3.5 billion on one percent volume growth.
For fiscal 2009, the company expects sales to grow by 2-5%.