Annual Sales Down at P&G

For the fiscal year 2015, Procter & Gamble saw a 5% decrease in net sales to $76.3 billion. The Beauty, Hair and Personal Care segment organic sales declined 1% as pricing benefits only partially offset lower volume. Innovation-driven sales growth in Cosmetics and Salon Professional was offset by a sales decline in Skin and Personal Care due to competition and decreased sales in Prestige due to lower levels of innovation. Hair Care organic sales were unchanged as modest growth from pricing in developing markets was offset by lower volume in developing regions due to competitive activity.
 
Grooming segment organic sales increased 1% due to higher pricing and innovation on Blades & Razors and Appliances, which was partially offset by lower volume mainly due to a combination of continued decline in consumer shaving incidents and customer inventory reductions.
 
Health Care segment organic sales rose 4% due to a favorable mix of pricing in both Oral Care and Personal Health Care, more than offsetting lower volume due to competitive activity.
 
Fabric Care and Home Care segment organic sales jumped 2% with growth across each business. Fabric Care sales grew behind volume increases from product innovation and pricing while Home Care sales benefited from favorable product mix. Sales also increased in P&G Professional due to higher volume from increased distribution.
 
Baby, Feminine and Family Care segment organic sales increased 3% driven by pricing, mainly in Baby Care and Feminine Care, positive product mix from Baby Care premium products and the Feminine Care adult incontinence launch, and favorable geographic mix in all businesses. These gains were slightly offset by a modest decline in Family Care from reduced distribution in Latin America and reduced pricing in North America.
 
P&G clarified that its guidance for fiscal year 2016 is relative to fiscal 2015 results after estimated restatements to report the earnings from the Beauty categories it plans to exit as discontinued operations. P&G announced the planned exit of several Beauty categories on July 9, 2015, as previously reported in Happi.
 
P&G said it is projecting organic sales to be in-line to up low-single digits versus fiscal 2015. Foreign exchange is expected to be a four to five percentage point headwind on all-in sales growth. As a result, the company expects all-in sales to be down low-to-mid single digits versus fiscal 2015 results.