01.25.13
The Procter & Gamble Company (P&G) reported a 2% rise in net sales to $22.2 billion for the October–December 2012 quarter. According to the financial report, the company delivered broad-based organic sales growth, with all business segments increasing organic sales by 2% or more versus the prior year.
P&G held or grew market share in businesses representing nearly 50 percent of sales in the October-December quarter, as measured on a constant currency value basis. In the US market, P&G held or grew value share in businesses representing nearly 60% of sales.
“Our second quarter results were at the high end of our expectations on the top-line and well ahead of forecast on operating profit, earnings per share and cash flow,” said Chairman, President and Chief Executive Officer Bob McDonald. “Global market share trends improved as we continued to implement our growth strategy and made very good progress against our productivity and cost savings goals. Our strong first half results have enabled us to raise our sales, earnings and share repurchase outlook for the fiscal year, while we strengthen investments in our innovation and marketing programs.”
Net sales were up 1% in the beauty segment. The majority of the businesses in beauty increased net sales versus the prior year driven by innovation and higher pricing. Net sales decreased in skin care due to competitive activity. Net sales decreased in salon professional due to the negative impact from foreign exchange and market softness. Higher pricing and productivity savings in cost of goods and overheads drove increased net earnings.
Health care rose 3%, as oral care net sales grew behind new innovation, market expansion and higher pricing, partially offset by negative foreign exchange. Fabric care also rose 3%, as net sales growth was driven by new product launches, positive pricing and product mix. Home care delivered higher net sales primarily due to volume growth from innovation and geographic expansion.
For fiscal 2013, The company is increasing its organic sales growth guidance to a range of 3%-4% for the fiscal year from a previous range of 2%-4%.