Sales Up 2% at P&G

The Procter & Gamble Company (P&G)reported favorable first quarter results (July-September). Net sales increased 2% to $20.1 billion, and volume increased 8% driven by growth in all major geographic regions and five of six business segments.

“Our first quarter was a good start to the fiscal year.We maintained our top-line momentum and delivered profitable market share growth,” said Chairman of the Board, President and Chief Executive Officer Bob McDonald.

Key initiatives for the quarter included the North American launches of Tide with Acti-Lift, Crest Pro-Health Clinical, Gain dishwashing liquid, Febreze Set ‘n Refresh and Gucci Guilty; brand restages of Pantene in Asia and Downy in North America; an upgrade to Charmin and expansions of Pampers Dry Max to additional countries in Western Europe and Central & Eastern Europe/Middle East/Africa (CEEMEA).

Beauty net sales were in line with the prior year period at $4.9 billion on unit volume growth of 4%, according to the company. However, there were declines in the premium-priced categories of Prestige Products and Salon Professional. Volume in Retail Hair Care increased mid-single digits behind double-digit growth in developing regions led by Pantene and Head & Shoulders.Volume in Female Beauty grew mid-single digits primarily behind double-digit growth of Olay, Safeguard and Venus.Volume in Salon Professional declined high single digits mainly due to the exit of non-strategic businesses.Volume in Prestige Products was down high single digits behind lower shipments in Western Europe and the divestiture of minor brands.Net earnings increased 7%to $829 million.


Grooming net sales increased 2% to $1.9 billion. Net earnings increased 13% to $398 million driven primarily by net sales growth and operating margin expansion.

Oral Care volume was up high single digits behind the launch of the Crest Pro-Health Clinical line in North America, expansion of Oral-B toothpaste in Brazil, Belgium and Holland, and the success of the Pro-Health innovation in multiple markets around the world.

Fabric Care and Home Care net sales increased 3% to $6.3 billion. Volume in Fabric Care increased high single digits mainly due to initiative activity in many markets and increased distribution in developing regions. Net earnings decreased 7% to $937 million.

According to the company, total net sales are expected to increase 3-5% in fiscal 2011.

P&G leads Happi‘s Top 50 (http://www.happi.com/articles/2010/07/1-procter-gamble) with sales at $63.1 billion for 2009.