P&G Reports Gains in Fiscal 2010

The Procter & Gamble Company reported that net sales grew 5% to $18.9 billion for the fourth quarter and 3% to $78.9 billion for fiscal 2010. The company grew global market share for the quarter, with all regions holding or growing share, and generated record adjusted free cash flow of $14 billion in fiscal 2010.

“We are executing on all three dimensions of our growth strategy—touching and improving more consumers’ lives, in more parts of the world, more completely,” said Bob McDonald, chairman of the board, president and CEO, P&G. “Our results in fiscal 2010 were ahead of our original expectations, and we are pleased with the trend of the business. The investments we’ve made in innovation, marketing support and consumer value have delivered accelerating unit volume and profitable market share growth throughout the year, which are clear indications that our strategy is working.”

Beauty net sales increased 3% in fiscal 2010 to $19.5 billion on unit volume growth of 3%. Hair care volume grew mid-single digits behind initiative-driven growth of Pantene, Head & Shoulders and Rejoice. Female beauty volume was up low-single digits mainly due to higher shipments of female skin care and personal cleansing products in Asia and CEEMEA.

Salon professional volume was down double digits mainly due to the exit of non-strategic businesses and continued market contractions. Prestige volume declined low-single digits due to continued contraction of the fragrance market. Net earnings increased 2% to $2.7 billion driven by net sales growth, partially offset by the impact of divestiture gains in the prior year and a higher tax rate in the current year. Oral care volume grew mid-single digits behind initiative activity in Western Europe, Latin America and Asia.

The full report is available from P&G.

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