P and G quarterly sales growth better than expected

Posted by Josette Dunn on 29th January 2010

The Procter & Gamble Company delivered net sales growth of six per cent for the October – December quarter to US$21.0 billion. Organic sales grew five per cent which was better than expected. Organic volume also experienced growth of five per cent.

Organic sales were quoted to be driven by initiative activity, strengthened marketing plans, targeted improvements in consumer value, market growth in some businesses and a base period that was impacted by trade inventory reductions and consumption declines. Price increases contributed one percent to net sales growth, and favorable foreign exchange added two percent to net sales growth as key foreign currencies strengthened versus the U.S. dollar. Volume growth was broad-based with growth in all geographic regions.

“We are pleased with the top- and bottom-line underlying results for the quarter,” said Chairman of the Board, President and Chief Executive Officer Bob McDonald. “Our investments in innovation, portfolio expansion, marketing support and consumer value are working. We continue to drive simplification and leverage our scale to create cost advantages and accelerate growth. While economic uncertainty remains, we’re confident these strategies will enable P&G to serve more consumers in more parts of the world, more completely and deliver profitable market share growth.”

Snacks and Pet Care net sales increased six percent to $835 million for the quarter on a one percent increase in unit volume. Organic sales increased three percent.  This is an improvement on the previous quarter, which experienced negative three percent growth in organic sales, and negative six percent growth in net sales.   

The Company has raised its expectations of fiscal 2010 organic sales growth on the back of this quarter’s results.