The Procter & Gamble Company (NYSE: PG) net sales grew five percent to $18.9 billion for the fourth quarter and three percent to $78.9 billion for fiscal 2010. Organic sales, which exclude the impact of acquisitions, divestitures and foreign exchange, grew four percent for the quarter and three percent for the fiscal year. Unit volume accelerated throughout the fiscal year and was up eight percent in the fourth quarter driven by growth in all business segments, regions, and key countries. The company grew global market share for the quarter, with all regions holding or growing share.

“We are executing on all three dimensions of our growth strategy–touching and improving more consumers’ lives, in more parts of the world, more completely,” says chairman of the board, president and CEO Bob McDonald. “Our results in fiscal 2010 were ahead of our original expectations, and we are pleased with the trend of the business. The investments we’ve made in innovation, marketing support and consumer value have delivered accelerating unit volume and profitable market share growth throughout the year, which are clear indications that our strategy is working.”

Beauty’s Performance
P&G’s beauty net sales increased three percent in fiscal 2010 to $19.5 billion on unit volume growth of three percent. Organic sales grew three percent versus the prior year on four percent organic volume growth. Volume growth was driven by high single-digit growth in developing regions, while volume in developed regions was consistent with the prior year. Price increases of one percent were offset by unfavorable geographic and category mix. Hair Care volume grew mid-single digits behind initiative-driven growth of Pantene, Head & Shoulders and Rejoice. Female Beauty volume was up low single digits mainly due to higher shipments of female skin care and personal cleansing products in Asia and CEEMEA. Salon Professional volume was down double digits mainly due to the exit of non-strategic businesses and continued market contractions.

Prestige volume declined low single digits due to continued contraction of the fragrance market. Net earnings increased two percent to $2.7 billion driven by net sales growth, partially offset by the impact of divestiture gains in the prior year and a higher tax rate in the current year. Higher gross margin driven primarily by price increases and manufacturing cost savings was offset by higher SG&A as a percentage of net sales mainly behind increased marketing spending.