Organic sales grew four percent during the April – June quarter on five percent unit volume growth. Net sales were $20.7 billion, an increase of two percent versus the prior year period including a negative two-percentage point impact from foreign exchange.
“The company met its objectives for the fourth quarter and fiscal year, and we will build on these results in fiscal 2014,” said chairman, president and CEO, A.G. Lafley. “With an overriding focus on value creation, we will strengthen and accelerate productivity plans. We will continue to make choiceful investments in core brands, our biggest innovation opportunities, and in our core developed and most promising developing markets. In all we do, we will stay focused on winning with consumers, customers and shareholders.”
For fiscal year 2014, P&G expects organic sales growth in the range of three percent to four percent compared to underlying global market growth of about 3.5 percent. All-in sales growth is forecast in the range of one percent to two percent, including a negative foreign exchange impact of approximately two percent.
In the Health Care segment in the April – June quarter Feminine Care net sales were in line with the prior year period as growth from innovation and improving share trends in North America were offset by foreign exchange. Personal Health Care delivered net sales growth due primarily to the addition of the New Chapter business. Health Care segment earnings increased due to the growth in net sales and overhead productivity savings, which were partially offset by higher marketing spending, reduced gross margin and foreign exchange.
In the Baby Care and Family Care Segment Baby Care net sales decreased, as an increase in sales from innovation and market growth in developing regions were more than offset by foreign exchange. Family Care net sales were up behind innovation in North America and Latin America and customer inventory increases at the end of the quarter ahead of early-July merchandising events. Net earnings for the segment decreased due to foreign exchange, start-up costs for new manufacturing capacity and unfavorable product and geographic mix, which were partially offset by manufacturing, marketing and overhead productivity savings.