Reported and core gross margin increased 30 basis points. Manufacturing and productivity savings improved gross margin by approximately 160 basis points, and pricing improved gross margin by 70 basis points. The company said that these benefits were largely offset by product and geographic mix and manufacturing start-up costs.
“The company met its objectives for the fourth quarter and fiscal year, and we will build on these results in fiscal 2014,” said Chairman, President and Chief Executive Officer, A.G. Lafley. “With an overriding focus on value creation, we will strengthen and accelerate productivity plans. We will continue to make choiceful investments in core brands, our biggest innovation opportunities, and in our core developed and most promising developing markets. In all we do, we will stay focused on winning with consumers, customers and shareholders.”
By category, beauty care sales fell 2% to $19.9 billion, grooming sales fell 4% to $8.0 billion, health care sales rose 3% to $12.8 billion, fabric and home care sales increased 1% to $27.4 billion, and baby and family care sales increased 2% to $16.7 billion.