Procter & Gamble may be the biggest consumer products company in the world, but P&G couldn’t overcome the global recession in its recently concluded fiscal year as sales fell 3% to $79.0 billion.

Beauty net sales fell 4% to $18.8 billion in fiscal 2009 behind unfavorable foreign exchange impacts of 4%. Organic sales increased 1% behind price increases of 2%, partially offset by an organic volume decline of 1%. Unit volume declined 2%. Retail hair care volume grew low single digits behind Pantene, Head & Shoulders and Rejoice. Prestige fragrances volume declined high single digits and professional hair care volume declined mid-single digits mainly due to market contractions and trade inventory reductions during the fiscal year. Volume in skin care declined mid-single digits primarily due to increased competitive promotional activity affecting Olay and the divestiture of Noxzema. Personal cleansing volume was down high single digits behind trade inventory reductions, market contractions and divestiture activity. Net earnings fell 7% to $2.5 billion.

Grooming net sales fell 9% $7.5 billion. Organic sales fell 2% due to a sharp decline of the Braun business. Unfavorable foreign exchange reduced net sales by 6%. Unit volume declined 6% too.