07.09.10
Cincinnati, OH
513.983.1100
www.pg.com
Sales: $63.1 billion
Sales:
$63.1 billion (estimated) for personal care, oral care and household products. Net sales: $79 billion. Net income: $13.4 billion for the year ended June 30, 2009
Key Personnel:
Bob McDonald, chairman, president and chief executive officer; Werner Geissler, vice chairman, global operations; Dimitri Panayotopoulos, vice chairman, global household care; Ed Shirley, vice chairman, global beauty and grooming; Robert A. Steele, vice chairman, global health and well-being; Charles V. Bergh, group president, global male grooming, beauty and grooming; Mary Lynn Ferguson-McHugh, president, family care; John P. Goodwin, president, global Braun, beauty and grooming; Melanie L. Healey, group president, North America; Teri L. List, senior vice president and treasurer; Filippo Passerini, president, global business services and chief information officer; Marc S. Pritchard, global marketing and brand building officer; Jeffrey K. Schomburger, president, global Walmart team; Jorge A. Uribe, president, Latin America; Giovanni Ciserani, president, western Europe; Thomas M. Finn, president, global health care; R. Keith Harrison Jr., global product supply officer; Deborah A. Henretta, group president, Asia; Patrice Louvet, president, global prestige, beauty and grooming; Jon R. Moeller, chief financial officer; Laurent L. Philippe, group president, Central and Eastern Europe, Middle East and Africa; Martin Riant, group president, global baby care; Valarie L. Sheppard, senior vice president and comptroller and global household care finance and accounting; Christopher de Lapuente, group president, global hair care, beauty and grooming; Virginia Drosos, president, global female beauty, beauty and grooming; Robert L. Fregolle Jr., global customer business development officer; Christopher D. Hassall, global external relations officer; Robert Jongstra, president, global salon professional, beauty and grooming; Charles E. Pierce, group president, global oral care; Daniela Riccardi, president, greater China; David S. Taylor, group president, global home care
Major Products:
Beauty care—cosmetics, fragrances, hair care, antiperspirants and skin/beauty care marketed under such brands as Gillette, Pantene, Olay, DDF, Head & Shoulders, Hugo Boss, Secret, SK-II, Zest, Safeguard, Rejoice, Clairol, Herbal Essences, Cover Girl, Old Spice, Wella, Aussie and Ivory. Fabric and Home care—dish care, household cleaners and laundry care including brands such as Tide, Ariel, Downy, Lenor, Gain, Cascade, Ace, Cheer, Bold, Swiffer, Bounce, Dash, Dawn, Fairy, Joy, Febreze, Era, Dreft, Daz, Vizir, Salvo, Mr. Proper, Mr. Clean, Flash, Viakal, Alomatik, Ivory, Maestro Limpio and Rindex. Health care—toothpaste and brushes, mouthwash and teeth whitening products including brands such as Scope, Crest and Vicks
New Products:
Laundry—Swash, Febreze Fabric Refresher, Bounce Dryer Bar; Blades and razors—Gillette Fusion ProGlide razor, Gillette Pro-Series shave care, Venus line extensions; Beauty—Olay Professional Pro-X and Regenerist 14 Day Skin Intervention, Regenerist Advanced Anti-Aging UV Defense Regenerating Lotion SPF 50, Regenerist Advanced Anti-Aging Eye Roller, Regenerist Advanced Anti-Aging Superstructure UV Cream SPF 25, Complete Ageless Skin Renewing UV lotion, Complete Ageless Eye Brightening Cream and Complete Ageless Rejuvenating lathering cleanser, Purifying Mud Lathering Cleanser, Quench Advanced Healing body lotion, Pantene relaunch, Fekkai Advanced, Head & Shoulders Hair & Scalp, Old Spice Everclear and Fresh Collection deodorants, Cover Girl Lash Blast mascara, SmokeyShadow Blast eyeshadow, ShineBlast lipgloss, Clean makeup and powder, Simply Ageless corrector and concealer; Oral Care—Crest Extra White Plus Scope Outlast toothpaste (long lasting mint), Scope Outlast mouthwash (long lasting mint), Crest Pro-Health Sensitive Shield toothpaste, 3D White Whitestrips Professional Effects, Crest Pro-Health Enamel Shield Rinse, Crest Weekly Clean Intensive Cleaning Paste (refreshing mint), Oral-B Pro-Saude; Household—Mr. Clean Antibacterial Multi-surfaces cleaners with Febreze Freshness, Mr. Clean Bathroom Cleaners, Ariel/Dash stain remover, Ariel with Actilift.
Comments:
The recession took a bite out of Procter & Gamble’s sales in fiscal 2009, as sales declined 3%. However, net income increased 11%. Most of the sales decline was attributed to more discretionary categories such as prestige fragrances, professional hair care and Braun appliances, along with personal health care.
By category, beauty sales fell 4% to $18.7 billion on a 2% decline in volume. Volume in developed regions declined mid-single digits, while volume in developing regions grew low single digits. Retail hair care volume grew low single digits behind growth of Pantene, Head & Shoulders and Rejoice. Prestige fragrance volume declined high single digits and professional hair care volume declined mid-single digits mainly due to market contractions and trade inventory reductions. Volume in skin care declined mid-single digits primarily due to competitive activity affecting shipments of Olay and the divestiture of Noxzema. Personal cleansing volume was down high single digits behind trade inventory reductions, market contractions and divestiture activity, the company said.
Grooming net sales declined 9% in 2009 to $7.5 billion on a 6% decline in unit volume. Growth of Fusion sales was offset by a decline in Braun sales. Overall, volume in developed regions declined high single digits and volume in developing regions declined mid-single digits. Blades and razors volume declined low single digits primarily driven by market contractions in developed regions and trade inventory reductions.
Health and well-being sales fell 7% to $13.6 billion. The divestitures of Thermacare and other minor brands resulted in 1% of the unit volume decline, according to the company.
Oral care volume declined low single digits behind trade inventory reductions and market contractions in North America and Central Eastern Europe, Middle East and Africa (CEEMEA). Still, P&G maintains that its share of the global oral care market was in line with the prior year.
Household care, including fabric and hard surface cleaners, posted a 2% decline in sales to $23.1 billion on a 3% decline in unit volume. P&G blamed a low single digit decline on trade inventory reductions and net market share declines following price increases. At the same time, lower shipments of premium-priced Tide and Ariel were only partially offset by growth of Gain and Downy.
Bob McDonald Takes Over
But the recession wasn’t the only marker of 2009. During the year, A.G. Lafley turned the reigns over to Bob McDonald who established a robust platform for growth, based on three principles:
1. Grow its leading global brands and core categories—with an unrelenting focus on innovation;
2. Build business with underserved and unserved consumers; and
3. Continue to grow and develop faster-growing, structurally attractive businesses with global leadership potential.
According to P&G, its 43 billion-dollar and aspiring billion-dollar brands account for 85% of sales and more than 90% of profits. And while P&G is a leader in many categories, the company wants more. For instance, P&G holds a 20% share of the $200 billion global household care market. In the $300 billion beauty and grooming category, P&G only has a 13% share and in the $240 billion consumer health care market, P&G holds just 5%. Obviously, there’s room for growth, and P&G expects to gain share and profits by utilizing its core strengths such as consumer understanding, brand building and innovation.
To reach “underserved and unserved” consumers, P&G is increasing its presence in developing markets, extending its distribution systems to reach more consumers through underserved retail channels (including drug, pharmacy and perfumery outlets, high frequency stores, export operations and e-commerce), expanding its portfolio into the premium-priced, value-priced portion of the market, and using existing brands to enter new segments; i.e., Febreze candles.
The third growth strategy—develop faster-growing, structurally attractive businesses with global leadership potential—demands that the company focus on beauty and health care segments as well as several household care categories.
It’s all part of chief executive McDonald’s plan to build a $100 billion company with the speed and agility of a $10 billion company. At the start of the decade, P&G served 2.5 billion people around the world. Today, that number is four billion, but still one billion short of the number the company hopes to serve a decade from now, according to McDonald.
McDonald’s team has been putting that plan in place for nearly a year now, and so far, the results are promising. For the nine months ended March 31, 2010, sales rose 2% to $60 billion.
Taking a closer look at the numbers, beauty net sales increased 6% to $4.6 billion for the quarter ended March 31, 2010, on unit volume growth of 4%. Grooming net sales grew 11% for the quarter to $1.8 billion on a 6% increase in unit volume. Health care net sales were up 5% to $2.8 billion during the third fiscal quarter on a 5% increase in unit volume. Fabric care and home care net sales increased 8% to $5.8 billion for the quarter on a 10% increase in unit volume.
During the year, P&G made a couple of key acquisitions. In May, it agreed to acquire Natura Pet Products, Inc., a privately-held pet food business based in Davis, CA. This move enables P&G to expand into the attractive “holistic and naturals” segment of the pet food category, complementing P&G’s current Iams and Eukanuba brands, and helps the company advance its overall growth strategy of“reaching more consumers in more parts of the world more completely.”
Natura’s brands include Innova, Evo, California Natural, Healthwise, Mother Nature and Karma. These brands are sold in a limited number of pet specialty stores and through veterinarians, mainly in the U.S. and Canada.
For the fiscal year, ended June 30, P&G expects net sales growth to be 3-5%.
513.983.1100
www.pg.com
Sales: $63.1 billion
Sales:
$63.1 billion (estimated) for personal care, oral care and household products. Net sales: $79 billion. Net income: $13.4 billion for the year ended June 30, 2009
Key Personnel:
Dimitri Panayotopoulos
|
Werner Geissler |
Bob McDonald, chairman, president and chief executive officer; Werner Geissler, vice chairman, global operations; Dimitri Panayotopoulos, vice chairman, global household care; Ed Shirley, vice chairman, global beauty and grooming; Robert A. Steele, vice chairman, global health and well-being; Charles V. Bergh, group president, global male grooming, beauty and grooming; Mary Lynn Ferguson-McHugh, president, family care; John P. Goodwin, president, global Braun, beauty and grooming; Melanie L. Healey, group president, North America; Teri L. List, senior vice president and treasurer; Filippo Passerini, president, global business services and chief information officer; Marc S. Pritchard, global marketing and brand building officer; Jeffrey K. Schomburger, president, global Walmart team; Jorge A. Uribe, president, Latin America; Giovanni Ciserani, president, western Europe; Thomas M. Finn, president, global health care; R. Keith Harrison Jr., global product supply officer; Deborah A. Henretta, group president, Asia; Patrice Louvet, president, global prestige, beauty and grooming; Jon R. Moeller, chief financial officer; Laurent L. Philippe, group president, Central and Eastern Europe, Middle East and Africa; Martin Riant, group president, global baby care; Valarie L. Sheppard, senior vice president and comptroller and global household care finance and accounting; Christopher de Lapuente, group president, global hair care, beauty and grooming; Virginia Drosos, president, global female beauty, beauty and grooming; Robert L. Fregolle Jr., global customer business development officer; Christopher D. Hassall, global external relations officer; Robert Jongstra, president, global salon professional, beauty and grooming; Charles E. Pierce, group president, global oral care; Daniela Riccardi, president, greater China; David S. Taylor, group president, global home care
Major Products:
Beauty care—cosmetics, fragrances, hair care, antiperspirants and skin/beauty care marketed under such brands as Gillette, Pantene, Olay, DDF, Head & Shoulders, Hugo Boss, Secret, SK-II, Zest, Safeguard, Rejoice, Clairol, Herbal Essences, Cover Girl, Old Spice, Wella, Aussie and Ivory. Fabric and Home care—dish care, household cleaners and laundry care including brands such as Tide, Ariel, Downy, Lenor, Gain, Cascade, Ace, Cheer, Bold, Swiffer, Bounce, Dash, Dawn, Fairy, Joy, Febreze, Era, Dreft, Daz, Vizir, Salvo, Mr. Proper, Mr. Clean, Flash, Viakal, Alomatik, Ivory, Maestro Limpio and Rindex. Health care—toothpaste and brushes, mouthwash and teeth whitening products including brands such as Scope, Crest and Vicks
New Products:
Laundry—Swash, Febreze Fabric Refresher, Bounce Dryer Bar; Blades and razors—Gillette Fusion ProGlide razor, Gillette Pro-Series shave care, Venus line extensions; Beauty—Olay Professional Pro-X and Regenerist 14 Day Skin Intervention, Regenerist Advanced Anti-Aging UV Defense Regenerating Lotion SPF 50, Regenerist Advanced Anti-Aging Eye Roller, Regenerist Advanced Anti-Aging Superstructure UV Cream SPF 25, Complete Ageless Skin Renewing UV lotion, Complete Ageless Eye Brightening Cream and Complete Ageless Rejuvenating lathering cleanser, Purifying Mud Lathering Cleanser, Quench Advanced Healing body lotion, Pantene relaunch, Fekkai Advanced, Head & Shoulders Hair & Scalp, Old Spice Everclear and Fresh Collection deodorants, Cover Girl Lash Blast mascara, SmokeyShadow Blast eyeshadow, ShineBlast lipgloss, Clean makeup and powder, Simply Ageless corrector and concealer; Oral Care—Crest Extra White Plus Scope Outlast toothpaste (long lasting mint), Scope Outlast mouthwash (long lasting mint), Crest Pro-Health Sensitive Shield toothpaste, 3D White Whitestrips Professional Effects, Crest Pro-Health Enamel Shield Rinse, Crest Weekly Clean Intensive Cleaning Paste (refreshing mint), Oral-B Pro-Saude; Household—Mr. Clean Antibacterial Multi-surfaces cleaners with Febreze Freshness, Mr. Clean Bathroom Cleaners, Ariel/Dash stain remover, Ariel with Actilift.
Comments:
The recession took a bite out of Procter & Gamble’s sales in fiscal 2009, as sales declined 3%. However, net income increased 11%. Most of the sales decline was attributed to more discretionary categories such as prestige fragrances, professional hair care and Braun appliances, along with personal health care.
Here’s a look at P&G’s billion-dollar brands.
|
By category, beauty sales fell 4% to $18.7 billion on a 2% decline in volume. Volume in developed regions declined mid-single digits, while volume in developing regions grew low single digits. Retail hair care volume grew low single digits behind growth of Pantene, Head & Shoulders and Rejoice. Prestige fragrance volume declined high single digits and professional hair care volume declined mid-single digits mainly due to market contractions and trade inventory reductions. Volume in skin care declined mid-single digits primarily due to competitive activity affecting shipments of Olay and the divestiture of Noxzema. Personal cleansing volume was down high single digits behind trade inventory reductions, market contractions and divestiture activity, the company said.
Grooming net sales declined 9% in 2009 to $7.5 billion on a 6% decline in unit volume. Growth of Fusion sales was offset by a decline in Braun sales. Overall, volume in developed regions declined high single digits and volume in developing regions declined mid-single digits. Blades and razors volume declined low single digits primarily driven by market contractions in developed regions and trade inventory reductions.
Health and well-being sales fell 7% to $13.6 billion. The divestitures of Thermacare and other minor brands resulted in 1% of the unit volume decline, according to the company.
Oral care volume declined low single digits behind trade inventory reductions and market contractions in North America and Central Eastern Europe, Middle East and Africa (CEEMEA). Still, P&G maintains that its share of the global oral care market was in line with the prior year.
Household care, including fabric and hard surface cleaners, posted a 2% decline in sales to $23.1 billion on a 3% decline in unit volume. P&G blamed a low single digit decline on trade inventory reductions and net market share declines following price increases. At the same time, lower shipments of premium-priced Tide and Ariel were only partially offset by growth of Gain and Downy.
Bob McDonald Takes Over
Bob McDonald
|
1. Grow its leading global brands and core categories—with an unrelenting focus on innovation;
2. Build business with underserved and unserved consumers; and
3. Continue to grow and develop faster-growing, structurally attractive businesses with global leadership potential.
According to P&G, its 43 billion-dollar and aspiring billion-dollar brands account for 85% of sales and more than 90% of profits. And while P&G is a leader in many categories, the company wants more. For instance, P&G holds a 20% share of the $200 billion global household care market. In the $300 billion beauty and grooming category, P&G only has a 13% share and in the $240 billion consumer health care market, P&G holds just 5%. Obviously, there’s room for growth, and P&G expects to gain share and profits by utilizing its core strengths such as consumer understanding, brand building and innovation.
To reach “underserved and unserved” consumers, P&G is increasing its presence in developing markets, extending its distribution systems to reach more consumers through underserved retail channels (including drug, pharmacy and perfumery outlets, high frequency stores, export operations and e-commerce), expanding its portfolio into the premium-priced, value-priced portion of the market, and using existing brands to enter new segments; i.e., Febreze candles.
The third growth strategy—develop faster-growing, structurally attractive businesses with global leadership potential—demands that the company focus on beauty and health care segments as well as several household care categories.
It’s all part of chief executive McDonald’s plan to build a $100 billion company with the speed and agility of a $10 billion company. At the start of the decade, P&G served 2.5 billion people around the world. Today, that number is four billion, but still one billion short of the number the company hopes to serve a decade from now, according to McDonald.
McDonald’s team has been putting that plan in place for nearly a year now, and so far, the results are promising. For the nine months ended March 31, 2010, sales rose 2% to $60 billion.
Taking a closer look at the numbers, beauty net sales increased 6% to $4.6 billion for the quarter ended March 31, 2010, on unit volume growth of 4%. Grooming net sales grew 11% for the quarter to $1.8 billion on a 6% increase in unit volume. Health care net sales were up 5% to $2.8 billion during the third fiscal quarter on a 5% increase in unit volume. Fabric care and home care net sales increased 8% to $5.8 billion for the quarter on a 10% increase in unit volume.
During the year, P&G made a couple of key acquisitions. In May, it agreed to acquire Natura Pet Products, Inc., a privately-held pet food business based in Davis, CA. This move enables P&G to expand into the attractive “holistic and naturals” segment of the pet food category, complementing P&G’s current Iams and Eukanuba brands, and helps the company advance its overall growth strategy of“reaching more consumers in more parts of the world more completely.”
Natura’s brands include Innova, Evo, California Natural, Healthwise, Mother Nature and Karma. These brands are sold in a limited number of pet specialty stores and through veterinarians, mainly in the U.S. and Canada.
For the fiscal year, ended June 30, P&G expects net sales growth to be 3-5%.