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IN THE NEWS
Beauty and Personal Care Fall Flat at P&G
2009-01-30 | 09:38
Slight drop in sales as expected, says company
Beauty and Personal Care Fall Flat at P&G
Slight drop in sales as expected, says company
The Procter & Gamble Company posted a 3% drop in net sales to
$20.4 billion for the October-December quarter of 2008. The company attributes the decrease due to unfavorable foreign exchange and lower volume.
"As expected, this was a particularly challenging quarter," said Chairman of the Board and Chief Executive Officer A.G. Lafley.
Beauty net sales decreased 4% to $4.9 billion for the quarter. Organic sales were in line with the previous year period.
Retail Hair Care volume grew low-single digits behind solid growth in developing regions. 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.
Personal Cleansing volume decreased high-single-digits primarily due to trade inventory reductions and market contractions. Volume in Skin Care decreased mid-single-digits mainly due to the divestiture of Noxzema. 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% during the quarter to $799 million primarily due to a reduction in net sales and lower operating margin from higher commodity costs.
Oral Care volume decreased low-single-digits 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 mid-single- digits 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% during the quarter to $3.5 billion on one percent volume growth.
For the 2009 fiscal year, the company expects organic sales to grow by 2-5%, while total sales growth is expected to be flat.
Slight drop in sales as expected, says company
The Procter & Gamble Company posted a 3% drop in net sales to
$20.4 billion for the October-December quarter of 2008. The company attributes the decrease due to unfavorable foreign exchange and lower volume.
"As expected, this was a particularly challenging quarter," said Chairman of the Board and Chief Executive Officer A.G. Lafley.
Beauty net sales decreased 4% to $4.9 billion for the quarter. Organic sales were in line with the previous year period.
Retail Hair Care volume grew low-single digits behind solid growth in developing regions. 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.
Personal Cleansing volume decreased high-single-digits primarily due to trade inventory reductions and market contractions. Volume in Skin Care decreased mid-single-digits mainly due to the divestiture of Noxzema. 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% during the quarter to $799 million primarily due to a reduction in net sales and lower operating margin from higher commodity costs.
Oral Care volume decreased low-single-digits 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 mid-single- digits 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% during the quarter to $3.5 billion on one percent volume growth.
For the 2009 fiscal year, the company expects organic sales to grow by 2-5%, while total sales growth is expected to be flat.
