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P&G Reports Q4
Posted: August 5, 2008The Procter & Gamble Company announced net sales growth of 10% for the April–June quarter to $21.3 billion and 9% net sales growth for the fiscal year to $83.5 billion. Organic sales were up 5% for both the quarter and the fiscal year, marking the seventh year and 24th consecutive quarter in which P&G delivered top-line growth at or above the company's targets.
"Once again, P&G delivered top and bottom line growth at or above the company's targets—while also successfully completing the integration of Gillette," said A.G. Lafley, chairman of the board and CEO, P&G. "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. 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."
Diluted net earnings per share increased 37% for the quarter to $0.92 and 20% to $3.64 for the fiscal year. The quarter and fiscal year included net tax benefits of $0.12 and $0.14 respectively, due to a number of significant adjustments to tax reserves in the U.S. and other countries. Quality of earnings growth was strong as operating profit increased 13% for the quarter and 11% for the fiscal year behind sales growth and operating margin improvement. Operating margin was up due to overhead productivity improvements and increased pricing, which combined, more than offset a significant increase in commodity and energy costs.
Beauty net sales increased 11% during the quarter to $5.0 billion. Net sales were up behind a two% increase in volume, a two% pricing impact and a seven% favorable foreign exchange impact. Cosmetics volume grew high-single digits behind the Cover Girl Lash Blast mascara initiative. 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 care and on Pantene in North America. Net earnings were flat during the quarter at $569 million as higher net sales and a lower tax rate were offset by increased overhead spending and higher commodity costs.
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