P&G posts strong quarterly growth
CINCINNATI P&G announced on Tuesday that it posted its 24th consecutive quarter of top-line growth at or above the company’s targets as it completed the integration of Gillette.
“We’re leading innovations across the brand portfolio, building value for consumers and customers which is critical to delivering good results in a difficult economic environment,” stated A.G. Lafley, chairman and chief executive officer. “The strength of the portfolio and our focus on innovation and productivity give us confidence that we will continue to deliver sustained growth in the coming year and beyond.”
Beauty net sales rose 11 percent to $5 billion, as net earnings were flat at $569 million. Cosmetics volume grew high-single digits behind the CoverGirl Lash Blast mascara initiative, while skin care volume grew mid-single digits behind strong growth in developing regions. Hair care volume grew low-single digits as strong growth on Head & Shoulders, Rejoice and Nice ‘n Easy were partially offset by declines in professional hair and on Pantene in North America.
Grooming net sales were up 12 percent to $2.1 billion for the quarter, as net earnings increased 31 percent to $396 million. Earnings grew behind sales growth, lower overhead spending as a percentage of net sales and high base period marketing spending to support the Fusion expansion. Volume in blades and razors grew low-single digits as double-digit growth in developing regions behind the geographic expansion of Fusion was partially offset by lower shipments in developed regions. Fusion volume grew more than 30 percent globally in the quarter versus the prior year period. Volume for Braun was down low-single digits as strong growth in developing regions was more than offset by the exists of the U.S. home appliance business and Tassimo coffee appliance business.