For fiscal year 2018, net sales were $66.8 billion, a 3% increase versus the prior year. Organic sales increased 1% for the year, driven by a 2% increase in organic shipment volume. Diluted net earnings per share were $3.67, a decrease of 34% versus the prior year primarily due to the Beauty Brands divestiture gain in the base period.
“We made important progress in fiscal 2018,” David Taylor, chairman, president and CEO, said upon release of the financials. “We delivered strong volume and consumption growth, market share trends improvement, Core EPS and cash generation results above going-in targets, albeit with organic sales slightly below target. We are operating in a very dynamic environment affecting the cost of operations and consumer demand in our categories and against highly capable competitors. We will accelerate change in the organization and culture to meet these challenges. We will continue to drive cost and cash productivity improvements, and we will invest in the superiority of our products, packages and demand creation programs. All of these efforts are aimed at delivering balanced top-line and bottom-line growth that creates shareholder value over the short, mid and long term.”
Net sales in the April-June quarter were $16.5 billion, an increase of three percent versus the prior year period including a two percent positive impact from foreign exchange.
Organic sales increased one percent on a three percent increase in organic volume. All-in volume increased two percent. Pricing reduced net sales by two percent due primarily to increased merchandising investments.
During the quarter, beauty segment organic sales increased seven percent versus year ago, noted P&G. Skin and personal care organic sales increased double digits driven by product and packaging innovation, increased investments to strengthen consumer communication and positive product mix from the disproportionate growth of the super-premium SK-II brand and Olay Skin Care. Hair care organic sales increased mid-single digits due to product innovation and improved retail execution, noted P&G.
Grooming segment organic sales decreased three percent. Shave care organic sales decreased low single digits due to investments to improve consumer and customer value, primarily in the North America region. Appliances organic sales decreased low single digits due to trade inventory reductions.
Health care segment organic sales increased one percent for the quarter. Oral care organic sales increased low single digits due to product innovation, partially offset by the reversal of a U.S. toothpaste list price increase taken last year. Personal health care organic sales increased low single digits driven by higher shipments and increased pricing, noted P&G.
Fabric & Home Care segment organic sales increased two percent for the quarter. Fabric care organic sales increased low single digits driven by product innovation and improved retail execution, partially offset by increased investments in consumer and customer value. Home care organic sales were unchanged, said P&G.
P&G’s Baby, Feminine & Family Care segment organic sales decreased two percent versus prior year.
The CPG giant said it is projecting organic sales growth in the range of two to three percent for fiscal year 2019.