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P&G Continues To Grow Amidst Challenges

By Karen McIntyre | May 5, 2011

diaper, wipes prices to increase this summer

Although its reported 5% broadbased growth across the bulk of its brands and in all of its geographical areas, Procter & Gamble continues to face a number of challenges, executives told investors last week. Among these are slower than expected growth in developed markets, increasing commodity costs and supply shortages in several categories, particularly of some new product introductions.

On the flip side, P&G continues to focus on innovation and has a strong pipeline of new products across all of its categories. In the nonwovens-related segments, the sales growth has been achieved through the roll out of Tampax Pearl in FranceNaturella Pads in Holland. Additionally, Naturella has grown in all regions, particularly in Holland and China and the Always Whisper brand has grown 40% in India following a restage.

In the baby care, segment P&G reported 5% sales growth on 7% volume growth as the company continues to grow its marketshare on the Pampers DryMax upgrade. In July, the company will initiate a pricing increase on Pampers diapers and wipes to help offset climing commodity costs. The benefits of this increase are expected to be felt in 2012 results.­

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