"We have proven that when you innovate at the high end of the market, it pays off," said Bob MacDonald, chairman of the board and CEO.
During the second quarter of FY2011, P&G reported its diaper share in Western Europe up a point and a half on the DryMax roll out. Additionally, this premium priced innovation has helped P&G grow its marketshare in 13 of its 17 largest diaper markets. "The vast majority of consumers who have tried this product like it for it comfort and its dryness and are happy with their baby using it," said CFO Bob MacDonald.
Other highlights of P&G's diaper business include a one point share gain in North America—amidst a declining market—thanks to the Luvs Heavy Duty Protection initiative, a 50% increase in shipments in India, a 25% increase in Brazil and a 20% gain in China.
For the second quarter of 2011, P&G's baby and family care unit grew its sales 6% and its volumes 8%. Growth was three times as great in developing markets as it was in developed areas, according to Teri List, P&G's senior vice president and treasurer.
Across its entire business, P&G's sales increased 2% on volume increases of 6%. Marketshare was up in all geographic regions and the majority of key countries and brands. Businesses representing about 60% of net sales maintained or grew market hare.
"We are expanding market shares by touching and improving the lives of more consumers in more parts of the world, more completely through our innovation and expansion plans," said Mr. McDonald. "This is driving strong volume and sales growth ahead of market levels. Core EPS is ahead of year-ago levels, and we are on track to deliver 7-9% growth for the year."