Sales: $69.5 billion (estimated) for personal care, household care and oral care products. Corporate sales: $84.1 billion. Net income: $11.3 billion for the year ended June 30, 2013.
Key Personnel: AG Lafley, chairman, president and chief executive officer; Werner Geissler, vice chairman, global operations; Mark Biegger, chief human resources officer; Giovanni Ciserani, group president, global fabric and home care; Linda W. Clement-Holmes, senior vice president, global business services; Joanne Crewes, president, global prestige; Philip J. Duncan, global design officer; Tarek Farahat, president, Latin America and global club, cash & carry channel; Mary Lynn Ferguson-McHugh, group president, Western Europe and global discounter & pharmacy channels; Thomas M. Finn, president, global health care; Kathleen B. Fish, chief technology officer; William P. Gipson, senior vice president, global diversity and research and development, global hair care, color and salon professional; Melanie L. Healey, group president, North America and global hyper, super and mass channel; Deborah A. Henretta, group president, P&G global beauty; Colleen E. Jay, president, global retail hair care and color; Hatsunori Kiriyama, president, Asia; Joan M. Lewis, global consumer & market knowledge officer; Patrice Louvet, group president, global grooming and shave care; Adil Mehboob-Khan, president, P&G salon professional, global Wella professional; Jon R. Moeller, chief financial officer; Julio Nemeth, senior vice president, product supply, global operations; Filippo Passerini, group president, global business services and chief information officer; Laurent L. Philippe, group president, CEEMEA and global high frequency store channel; Charles E.Pierce, group president, global oral care and new business creation and innovation; Marc S. Pritchard, global brand building officer; Martin Riant, group president, P&G global baby, feminine and family care; Jeffrey K. Schomburger, president, global, Walmart team; Valarie Sheppard, senior vice president, comptroller and treasurer; Yannis Skoufalos, global product supply officer; Shannan Stevenson, president, Greater China; Nancy K. Swanson, vice president, corporate; Carolyn M. Tastad, global customer business development officer; David S. Taylor, group president, P&G global health and grooming; Alex Tosolini, senior vice president, global eBusiness; George Tsourapas, president, global home care and P&G Professional; Jorge A. Uribe, global productivity and organization transformation officer.
Major Products: Household Care—Tide, Ariel, Cheer, Gain, Bold, Dreft, Era detergents; Joy and Cascade dish detergents; Febreze and Downy laundry additives; Mr. Clean, Comet and Swiffer household cleaners. Personal Care—Head & Shoulders, Nioxin, Pantene, Herbal Essences, Pert, Sebastian, Vidal Sassoon and Aussie hair care; DDF, Olay and SK-II skin care; Nice ‘n Easy hair color; Cover Girl, Dolce & Gabanna cosmetics; 007, Hugo Boss, Lacoste, Puma, Dunhill, Escada, Dulce & Gabbana, Fekkai and Gucci fragrances.
New Products: Household Care—Bounce Bursts, Tide Oxi Multi-Purpose Stain Remover, Febreze Allergen Reducer and Sleep Serenity, Sweet Dreams Collection, Swiffer Sweep & Trap, Gain Flings; Grooming—Fusion ProGlide with FlexBall, Gillette Body, Old Spice grooming collection, Old Spice Re-fresh body sprays; Beauty—Olay Regenerist (new formula), Dora the Explorer hair care, Pantene anti-oxidant damage-blocking technology; Oral Care—Crest 3D White Whitestrips Luxe Supreme FlexFit, Crest Be, Oral B Black 7000.
Comments: Sales rose just 1% in fiscal 2013, compared to a 3% gain in 2012. P&G said volume in baby care and family care grew mid-single digits. Volume in fabric care and home care and in health care grew low single digits. Beauty volume was in line with the prior year. Grooming volume decreased low single digits. By segment, beauty sales fell 2% to $20 billion. Organic sales rose 1% and price increases added 2%, but gains were offset by an unfavorable geographic mix that reduced beauty sales by 1% (gains in emerging markets don’t reap the financial rewards from those in developed markets) and unfavorable foreign exchange reduced sales by 2%.
Sales may be flat and the CEO may be the same, but it’s never truly a quiet year when you’re the biggest household and personal products company on the planet. Procter & Gamble is always making moves that ultimately will impact industry. For example, in April the company said it would exit the dog food business and now has billions on hand to expand its brands, enter new markets or ramp up R&D. That’s because Mars Inc. agreed to buy P&G’s Iams, Eukanuba and Natura pet food brands for $2.9 billion.
For the nine months ended March 31, sales were up 1% to $63.5 billion, but gross profit fell 1% and net earnings declined 4% to $9.5 billion. By segment, fabric and home care sales rose 2% to nearly $19.9 billion; baby, feminine and family care sales increased 1% to $16.5 billion; beauty sales fell 2% to $14.8 billion; health care sales rose 1% to $7.2 billion and grooming sales fell 2% to $5.9 billion.
For the full year, Procter & Gamble expects organic sales growth of 3-4%. All-in sales growth is expected to be up 1%, including a negative foreign exchange impact of 2-3%. Core earnings per share are expected to grow 3-5% for the fiscal year, and reported earnings per share are expected to grow in the range of 1-4%.
Even when business is flat Procter & Gamble is busy. In April, it launched its first ever in-wash fabric care product, Bounce Bursts, a bead-form product that allows consumers to control the amount of Outdoor Fresh scent added to the wash. The time released freshness capsules are said to release bursts of Outdoor Fresh scent throughout the day.
Around the same time that P&G chemists were bringing the outdoors in with Bounce Burst, they were taking Tide beyond the laundry room with the launch of Tide Oxi Multi-Purpose Stain Remover, its first product designed for use in and out of the wash. Said to be great for spot treating, cleaning hard surfaces and as a laundry booster, Tide Oxi is a true multi-purpose cleaner, with more than 225 uses (such as tile, upholstery and patio furniture), according to P&G. Back in the laundry room, Tide Oxi also gives a boost to detergent providing better stain removal, whiter whites and brighter colors. Its powerful stain removal technology is due to NOBS, which works with peroxide to form peracid, a color-safe bleach that makes it ideal for clothing and fabrics.
Earlier in the year, P&G expanded on its unit dose idea with the introduction of Gain Flings, which not only make detergent dosing easy, the line is billed as the best Gain detergent product to be introduced to the market. Flings provide a 3-in-1 benefit of Gain detergent plus OxiBoost plus malodor removal of Febreze. The new laundry packs deliver 2X more cleaning ingredients and 50% more scent vs. Gain liquid detergent all in a convenient pre-measured form. The products were a hit with loyal Gainiacs. In premarket testing, 97% said they would purchase Gain Flings in the future.
P&G is also rolling out new ideas in anti-aging. In March, it reformulated its best-selling Olay Regenerist line with new Skin Energizing Technology, which is billed as a hydrating formula designed to improve skin’s responsiveness to anti-aging ingredients and fight the look of skin fatigue by accelerating surface layer cell turnover, increasing brightness and decreasing the appearance of fine lines and wrinkles.
To make it easier for consumers to get whiter teeth, in March P&G introduced Crest 3D White Whitestrips Luxe Supreme FlexFit, the latest innovative addition to the Crest 3D White Whitestrips family. P&G says the new FlexFit technology allows the Whitestrips to stretch around the smile for better coverage and easier application. Earlier in the year, in January, Crest introduced Be, a line of toothpaste in three bold flavors including Mint Chocolate Trek, Vanilla Mint Spark and Lime Spearmint Zest.
Turn In, Tune Out
Too often, over-reliance on iPhones means iCan’tSleep. To cash in on the growing grassroots effort to get off the internet, in February, P&G launched the Sweet Dreams Collection fabric care regimen. The line of products is formulated with ingredients to clean, soften and freshen bedtime fabrics, from your linens to your pajamas, helping to create an ideal sleep environment so that you can relax in order to fall asleep. The regimen, all of which are official products of the National Sleep Foundation, includes Tide Plus a Touch of Downy Sweet Dreams, Downy Unstopables Dreams and Downy Infusions Sweet Dreams.
P&G researchers didn’t forget the guys. In January, they introduced Old Spice Hair, an assortment of shampoos, conditioners and styling products designed to give men the hair— and confidence—they need to succeed.
Kids could always use a burst of confidence, too. In January, P&G and Nickelodeon partnered to roll out Aussie Kids Dora the Explorer hair care collection. It is the brand’s first licensed product line.
The five-day, 40-hour (make that 35 hours) work week is pretty standard these days in the US and around the world and we can thank the son of P&G’s co-founder for it. William Cooper Procter’s 47-year career spanned from the factory floor to the corner office, but it was his time spent toiling over boiling soap vats, right out of Princeton, that helped create the modern workweek. When Procter (1862-1934) graduated from Princeton University in 1883, employees often worked 10 hours a day, six days a week. Procter convinced higher-ups to give employees Saturday afternoons off. Later, he swayed the company to start a profit-sharing plan and had a factory worker appointed to the board. Outside the office, he helped create the forerunner of the United Way of Greater Cincinnati and donated millions to build Children’s Hospital Research Foundation. Procter lived up to his own motto: “Things don’t just happen; you make them happen.”