Procter & Gamble reported its net sales increased 3% to $78.9 billion for fiscal 2010. Organic sales, which exclude the impact of acquisitions, divestitures and foreign exchange rates, grew 3% for the fiscal year.
Unit volume accelerated throughout the fiscal year driven by growth in all business segments, regions and key countries.
“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 chairman of the board, president and CEO Bob McDonald. “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.”
Net sales for the April-to-June quarter increased 5% to $18.9 billion driven by new product innovation, increased marketing spending and incremental merchandising support. Global market share growth was positive with all regions flat or growing share for the first time in 11 quarters. Key initiatives for the quarter include the launches of Gillette Fusion ProGlide, Olay Regenerist Micro-Sculpting Serum and Gucci by Gucci Pour Homme Sport, major brand restage of Pantene in North America, an upgrade to Bounty and expansions of Pampers Dry Max to Western Europe and Fairy dish care into Turkey. Favorable foreign exchange rates also contributed to net sales growth, adding 1%. Pricing lowered net sales by 1%. Mix reduced net sales by 3% due mainly to negative geographic mix impacts behind disproportionate growth in developing markets, which have lower than company average selling prices. Organic sales grew 4% for the quarter.
Baby care and family care net sales increased 4% to $14.7 billion for the fiscal year on 7% volume growth. Organic sales were up 5%. Unfavorable foreign exchange reduced net sales by 1%. Volume grew double digits in developing regions and mid-single digits in developed regions. Volume in baby care increased in the high single digits behind initiative activity, strong marketing programs to support new product launches and market size expansion.