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P&G Reports Q1

Posted: October 29, 2008
The Procter & Gamble Company announced net sales growth of 9% for the July–September quarter to $22.0 billion. Organic sales were up 5%, within the company's 4–6% target range. Sales growth was led by growth in the beauty, fabric care/home care and baby care/family care segments. Diluted net earnings per share increased 12% to $1.03 for the quarter.

"This quarter was yet another example of the strength of P&G's balanced brand and geographic portfolio," said A.G. Lafley, chairman of the board and CEO, P&G. "We continue focusing on leading innovation and improving productivity to deliver superior consumer and shareholder value. This focus on delighting consumers with trusted household and personal care products that consumers purchase weekly and use daily gives me continuing confidence P&G will deliver target growth over the long term, even in a challenging economic environment."

Beauty net sales increased 12% during the quarter to reach $5.1 billion. Net sales were up due to a 4% increase in volume, a 2% pricing impact and a 6% favorable foreign exchange impact. Hair care volume grew mid-single digits behind strong growth in developing regions. Globally, all major retail hair care brands contributed to volume growth led by mid-single digit growth of Pantene and double-digit growth of Head & Shoulders and Rejoice. This was partially offset by a low-single digit decline in professional hair care.

Cosmetics volume grew double digits behind continued growth of Cover Girl. Skin Care volume grew low-single digits due to double-digit growth of SK-II. Prestige Fragrances volume declined low- single digits due mainly to a shift in initiative timings to the second half of fiscal 2009. Earnings grew 9% during the quarter to $754 million as sales growth and lower SG&A expenses as a percentage of net sales were partially offset by reduced gross margin from higher commodity costs. Grooming net sales were up 6% to $2.1 billion for the quarter.

The complete report with charts is available here.