P&G’s fiscal year ‘off to a good start’ as Q1 net sales climb
CINCINNATI — Procter & Gamble delivered “strong” first-quarter sales growth, kicking off a “good start to the fiscal year” as net sales climbed 9% and organic sales grew 4%, the company announced on Thursday.
“The first quarter was a good start to the fiscal year,” stated 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.”
Net sales rose 9% to $21.9 billion during the quarter.
Net earnings slipped 2% to $3.02 billion, or $1.03 per diluted share, compared with $3.08 billion, in the year-ago period.
In beauty, net sales rose 9% to $5.4 billion and organic sales grew 4%. Price increases added 2% to net sales growth. Net earnings declined 12% to $731 million as lower operating margin more than offset the impact of sales growth, the company stated. Operating margin declined because of a commodity cost driven reduction in gross margin and increased marketing and research and development investments.
In grooming, net sales rose 10% to $2.1 billion and organic sales rose 3%. Price increases added 2% to net sales growth. Net earnings increased 10% to $438 million, in line with net sales growth.
CallingAllTypes.com to serve as online diabetes health movement
BOSTON — An online social health initiative for people with Type 1 and Type 2 diabetes will make its debut in honor of American Diabetes Month in November.
CallingAllTypes.com encourages people with Type 1 and Type 2 diabetes to become active members of online health communities so they can continue to share, learn and benefit from peer-to-peer interaction. The website is sponsored by healthcare communications company and patient advocacy organization BBK Worldwide, online health data sharing platform PatientsLikeMe and the American Diabetes Association.
"We have created a one-stop rallying point for people with Type 1 and Type 2 diabetes to tell their stories," BBK Worldwide founding principal Bonnie Brescia said. "Awareness is the first step toward social change. And without public and private understanding of the devastating effect of this condition, we are in a weakened position to do anything about it. This makes social media the obvious choice to facilitate this type of change."
PatientsLikeMe cofounder Ben Heywood added, "We’ve seen first-hand, when patients become empowered through online peer interaction, they take control of their conditions and improve their outcomes."
Colgate sees strong Q3 growth as toothpaste, manual toothbrush market shares rise
NEW YORK — Colgate-Palmolive announced on Thursday that it experienced a boost in third-quarter sales and net income as its global market shares in toothpaste and manual toothbrushes both hit record highs year to date.
Worldwide net sales totaled $4.38 billion, up 11% compared with the year-ago period. Organic sales rose 5%.
Net income during the quarter rose 4% to $643 million, or $1.31 per diluted share, compared with $619 million, or $1.21 per diluted share, in the year-ago period. Excluding certain items, such as the after tax gain from the sale of its laundry detergent brands in Colombia, net income was $641 million, an increase of 4% versus third quarter 2010.
In North America, which accounts for 18% of company sales, sales rose 3% as organic sales rose 2.5% during the quarter. Operating profit in North America decreased 5% in the quarter to $213 million, or 27.4% of net sales.
In the United States, new product launches, including Colgate Optic White and Colgate Sensitive Pro-Relief toothpastes and the relaunch of Colgate Total toothpaste, are strengthening the company’s leadership in toothpaste, with its share of that market reaching 35.8% year to date, up 0.5 share points versus year ago. Colgate noted that its strength in manual toothbrushes also continued, driven by Colgate 360 Optic White, Colgate 360 Sensitive Pro-Relief and Colgate 360 Surround manual toothbrushes.
“Colgate’s global market share in toothpaste and manual toothbrushes are both at record highs year to date. Colgate’s share of the global toothpaste market strengthened to 44.4% year to date, up 0.3 share points versus year ago,” stated Ian Cook, chairman, president and CEO. “Our global leadership in manual toothbrushes also strengthened during the quarter with Colgate’s global market share in that category reaching 31.8% year to date, up 0.5 share points versus year ago.”