P&G Appliance Volume Down, But Grooming Unit Sales Up 10%
Nov 4, 2011
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The Procter & Gamble Company, delivered strong first quarter net sales growth of 9% to $21.9 billion. Organic sales, excluding the impact of acquisitions, divestitures, and foreign exchange, grew 4% behind higher volume and pricing. P&G said all six business segments were up versus the prior year.
"The first quarter was a good start to the fiscal year," said Chairman, President and CEO Bob McDonald. "We maintained strong top-line growth momentum in a difficult operating environment. We are well positioned - due to continued top-line strength, recently implemented price increases and our productivity improvement and cost savings efforts - to improve earnings growth as we progress through the fiscal year."
P&G sells personal care appliances as part of its grooming business segment under brands such as Braun, Fusion, Gillette, and Mach3.
Grooming net sales increased 10% to $2.1 billion, while unit volume was in-line with the previous year. Organic sales were up 3% and price increases added 2% to net sales growth. A positive product mix increased net sales by 1%, which was thanks to ProGlide and premium appliances initiatives, with their higher-than-segment-average selling prices. Favorable foreign exchange helped net sales growth 7%.
P&G reported that grooming volume grew in the low single digits in developing regions and decreased low single digits in developed regions. Male Grooming volume grew low single digits behind growth of blades and razors in Asia and Latin America, as well as growth behind male personal care products in North America, partially offset by a decrease in blades and razors in Western Europe.
Appliances volume decreased high single digits due to market contraction in Western Europe and a strong base period for shavers, epilators, and hair care appliances. Net earnings increased 10% to $438 million, in line with net sales growth.
P&G's overall net sales and organic sales are expected to increase 3-6% in fiscal 2012.
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