The Procter & Gamble Company announced diluted net earnings per share growth of 11% to $0.82 per share. Earnings, according to the company were driven by net sales growth, continuing focus on cost control and Gillette synergy benefits, which more than offset higher commodity costs. Operating profit margin improved 60-basis points, driving a 13% increase in operating profit. Net sales increased 9% to $20.5 billion. Organic volume and sales were both up 5%. Five of the company's six segments delivered mid-single digit or higher organic volume growth.
"This quarter is yet another demonstration of the power of P&G's product category and geographic diversification and disciplined focus on cash and cost productivity," said A.G. Lafley, chairman of the board and CEO, P&G. "P&G delivered strong results in-line with long-term targets in a challenging economic and competitive environment with broad-based sales and share growth, earnings growth and overhead cost improvement."
Beauty net sales increased 9% for the quarter to $4.7 billion. Net sales were up on 3% volume growth and a 6% favorable foreign exchange impact. Volume was up mid-single digits in hair color behind the Nice 'N Easy Perfect 10 launch and in cosmetics behind the Cover Girl Lash Blast mascara initiative. Retail hair care volume was up mid-single digits, as high-teens growth on Head & Shoulders and double-digit growth on Rejoice were partially offset by a decline on Pantene in North America. Organic volume in prestige fragrances was up mid-single digits as a result of new product launches on Gucci, Hugo Boss and Dolce & Gabbana. All-in volume on prestige fragrances was up low-single digits due to minor brand divestitures. Professional hair care shipments were in-line with the prior year period as strong growth in Central and Eastern Europe was offset by a low-single digit decline in developed markets. Net earnings in beauty were down 2% to $589 million as the impact of higher net sales was more than offset by higher commodity costs and base period gains from minor Wella fragrance brand divestitures.
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P&G Reports Q1
April 30, 2008
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