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P&G Q1 2020 Driven by Beauty Gains

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SK-II and Olay China drove P&G Q1 2020 results in beauty.

P&G has announced Q1 2020 financial results, with net sales of $17.8 billion, an increase of 7% compared to the same period of fiscal 2019. According to the company, "Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales also increased 7%."

Beauty was a strong driver during the period (year-over-year growth of 10%), with a "disproportionate growth of the personal health care and skin and personal care categories," per P&G, in addition to higher selling prices and retailer inventories in Japan.

Growth leaders included the SK-II brand and China Olay. Results were also improved by increased pricing. Hair care grew in the mid-single digits. This was notably an area of high competition in recent Unilever results.

The grooming sector grew just 1% due to unit volume declines and rising competition.

Baby, feminine and family care results rose 5% year-over-year.

Operating cash flow was $4.2 billion for the quarter.

“We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results,” said David Taylor, chairman, president and CEO. “We will continue executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.”