The Net Works

P&G's Sales Jump 9% in Fiscal 2008

September 11, 2008

The Procter & Gamble Company posted a net sales growth of 10% for the April-June quarter to $21.3 billion, and 9% net sales growth for the fiscal year to $83.5 billion. Growth from new innovations on key brands was driven by the Head & Shoulders brand restage, Gucci by Gucci, Cover Girl Lash Blast, Nice ‘N Easy Perfect 10 and Febreze Candles, according to the company.

Operating profit increased 13% for the quarter and 11% for the fiscal year behind sales growth and operating margin improvement. Net earnings were up 33% for the quarter to $3 billion and 17% for 2008 to $12.1 billion.

Beauty net sales increased 11% during the quarter to $5 billion. According to P&G, cosmetics volume grew by high-single digits behind the Cover Girl Lash Blast mascara initiative. Skin care volume grew mid-single digits behind strong growth in developing regions. Hair care volume grew low-single digits as strong growth from Head & Shoulders and Nice ‘N Easy were partially offset by declines in professional hair care. Net earnings for beauty were flat during the quarter at $569 million.

Fabric care and home care net sales increased 13% during the quarter to $6.1 billion. Fabric care volume was up by mid-single digits from Tide, Ariel, Gain and Downy. Home care volume grew by high-single digits as a result of continued success of Febreze initiatives and trade inventory increases prior to announced price increases.