Procter & Gamble reported its net sales decreased 3% to $79 billion for fiscal 2009, driven by unfavorable foreign exchange impacts of 4% as the U.S. dollar strengthened against key foreign currencies. Organic sales increased 2%, primarily due to price increases taken across all segments, which added 5% to net sales. Product mix reduced net sales by 1%. Unit volume declined 3% as the global economic downturn, credit crisis and price increase contributed to market size declines and trade inventory reductions. Organic volumes, which exclude the impact of acquisitions and divestitures, was down 2% for the fiscal year.
Net sales for the April-to-June quarter decreased 11% to $18.7 billion. Unfavorable foreign exchange rates reduced net sales by 9% due to the strengthening of the U.S. dollar against key foreign currencies. Volumes declined 5% including a negative 1% percent from divestitures. Organic volume declined 4% driven primarily by significant pricing taken in developing regions to offset the transaction impact of foreign exchange, market contractions mainly in discretionary categories and some share loss in developed regions following price increases. Price increases added 5% to net sales and the product mix had a negative 2% impact on net sales. Organic sales declined 1% for the quarter.
Baby care and family care net sales increased 1% to $14.1 billion. Baby care volume grew in the low single digits due to growth of Pampers in developing regions and double-digit growth of Luvs in North America.