Beauty Industry

P&G Posts Positive Sales Growth for 2Q, Fiscal 2008

Ten percent net sales boost for quarter, 9% for year

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By: Jamie Matusow

Editor-in-Chief

The Procter & Gamble Company (P&G) announced a net sales growth of 10% for the April-June quarter to $21.3 billion, and 9% net sales growth for the fiscal year to $83.5 billion.

Growth from new innovations on key brands was driven by the Head & Shoulders brand restage, Gucci by Gucci, Cover Girl Lash Blast, and Nice ‘N Easy Perfect 10, according to the company.

Several new initiatives were launched during the quarter including Pantene Beautiful Lengths, Olay Regenerist 14 Day Skin Intervention and Definity Color Recapture Moisturizer.

Operating profit increased 13% for the quarter and 11% for the fiscal year behind sales growth and operating margin improvement. Net earnings were up 33% for the quarter to $3 billion and 17% for the fiscal year to $12.1 billion.

Beauty net sales increased 11% during the quarter to $5 billion. According to P&G, cosmetics volume grew high-single digits behind the Cover Girl Lash Blast mascara initiative. Skin care volume grew mid-single digits behind strong growth in developing regions. Hair care volume grew low-single digits as strong growth on Head & Shoulders, Rejoice and Nice ‘N Easy were partially offset by declines in professional hair care and on Pantene in North America. Net earnings for beauty were flat during the quarter at $569 million, as higher net sales and a lower tax rate were offset by increased overhead spending and higher commodity costs.



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