P&G beauty net sales increased by 9%

The Procter & Gamble Company delivered strong first quarter net sales growth of nine percent to USD 21.9 billion.

"The first quarter was a good start to the fiscal year," said Chairman of the Board, President and Chief Executive Officer 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."

Executive Summary

"Sales growth was broad-based, with all six business segments growing. Market share was in-line or higher in businesses representing 60 percent of global sales. We held or grew market share in three of five regions, 11 of our top 15 countries, four of six reporting segments and on 15 of our 24 billion-dollar brands," the company informed.

Beauty net sales increased nine percent to USD 5.4 billion on unit volume growth of four percent. Organic sales grew four percent, the ninth consecutive quarter of growth, on five percent organic volume growth.

"Beauty is continuing to make investments to support geographic expansions and to drive growth behind product initiatives. These investments have led to good results in developing markets and in categories such as Retail Hair Care and Prestige," P&G stated.

Volume grew high single digits in developing markets behind investments to support initiatives and expansions, and low single digits in developed regions. Volume in Retail Hair Care increased high single digits behind double-digit growth in developing regions led by Pantene initiatives and Head & Shoulders geographic expansions. Volume in Prestige Products increased double digits driven by initiatives across Gucci, Hugo Boss, and Lacoste and continued strength of the SK-II brand.

Fiscal Year 2012 Guidance

Net sales and organic sales are expected to increase three to six percent in fiscal 2012. Foreign exchange is expected to be neutral to sales growth for the year. Pricing is expected to add three to four percent to sales while unfavorable product and geographic mix is expected to reduce sales by one to two percent. Diluted net earnings per share from continuing operations and Core EPS are expected to be in the range of $4.17 to $4.33, up six to 10 percent versus a base period Core EPS of $3.95.