"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."
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.