P&G announces Q3 2021 fiscal year results
Procter & Gamble (P&G) reported third-quarter fiscal year 2021 net sales of $18.1 billion (€15 billion), an increase of 5% compared to the previous year.
The company’s beauty segment organic sales increased from 7% compared to a year ago. Skin and personal care organic sales increased high single digits, primarily driven by ‘positive mix impact’ from the growth of the super-premium SK-II brand, premium innovation in North America skincare, and increased pricing.
P&G’s hair care organic sales increased in the high single digits led by Greater China due to innovation, distribution growth, and a low base period due to pandemic-related shutdowns. Devaluation-related price increases also contributed to hair sales growth.
Grooming segment organic sales increased by 4% compared to a year ago. Appliances organic sales increased by more than 20% due to increased demand for at-home shaving and styling products, innovation, and increased pricing. Shave care organic sales were unchanged as devaluation-related price increases and growth in female blades and razors were offset by consumption declines in male blades and razors, due to decreased shave frequency.
In the healthcare segment, P&G’s organic sales increased by 3% for the quarter. Oral care organic sales increased in the high single digits driven by innovation and the positive mix impacts of premium products growth. Personal healthcare organic sales decreased in the mid-single digits, primarily due to pandemic-related increases in consumer and retailer inventories in the base period, and a lower than average cough, cold and flu season.
The company’s fabric and home care segment organic sales increased by 7% for the quarter. Fabric care organic sales increased in the low single digits driven by innovation, marketing investments, devaluation-related price increases and a positive mix from the ‘disproportionate growth’ of premium forms like fabric enhancer beads. Home care organic sales increased in the high teens driven by increased consumer demand for home cleaning products during the pandemic, innovation, increased marketing investments, and positive mix due to the disproportionate growth of the North America region.
In P&G’s baby, feminine, and family care segment organic sales decreased 1% compared to one year ago. Baby care organic sales decreased in the mid-single digits, primarily driven by a reduction in retailer inventories and competitive activity in the current period and pandemic-related pantry loading in the base period. Feminine care organic sales decreased in the low-single digits, driven by category contraction in certain European markets, partially offset by positive product mix due to premium innovation growth in North America and Greater China. Family care organic sales increased in the mid-single digits, primarily driven by increased pricing due to lower promotional activity.
“We delivered another quarter of solid top-line, bottom-line and cash results in what continues to be a challenging operating environment,” said David Taylor, chairman, president, and CEO of P&G.
“We remain focused on executing our strategies of superiority, productivity, constructive disruption, and improving P&G’s organisation and culture. These strategies enabled us to build strong business momentum before the COVID-19 crisis and accelerate our progress during the crisis, and they remain the right strategies to deliver balanced growth and value creation over the long-term.”
The company’s beauty segment organic sales increased from 7% compared to a year ago. Skin and personal care organic sales increased high single digits, primarily driven by ‘positive mix impact’ from the growth of the super-premium SK-II brand, premium innovation in North America skincare, and increased pricing.
P&G’s hair care organic sales increased in the high single digits led by Greater China due to innovation, distribution growth, and a low base period due to pandemic-related shutdowns. Devaluation-related price increases also contributed to hair sales growth.
Grooming segment organic sales increased by 4% compared to a year ago. Appliances organic sales increased by more than 20% due to increased demand for at-home shaving and styling products, innovation, and increased pricing. Shave care organic sales were unchanged as devaluation-related price increases and growth in female blades and razors were offset by consumption declines in male blades and razors, due to decreased shave frequency.
In the healthcare segment, P&G’s organic sales increased by 3% for the quarter. Oral care organic sales increased in the high single digits driven by innovation and the positive mix impacts of premium products growth. Personal healthcare organic sales decreased in the mid-single digits, primarily due to pandemic-related increases in consumer and retailer inventories in the base period, and a lower than average cough, cold and flu season.
The company’s fabric and home care segment organic sales increased by 7% for the quarter. Fabric care organic sales increased in the low single digits driven by innovation, marketing investments, devaluation-related price increases and a positive mix from the ‘disproportionate growth’ of premium forms like fabric enhancer beads. Home care organic sales increased in the high teens driven by increased consumer demand for home cleaning products during the pandemic, innovation, increased marketing investments, and positive mix due to the disproportionate growth of the North America region.
In P&G’s baby, feminine, and family care segment organic sales decreased 1% compared to one year ago. Baby care organic sales decreased in the mid-single digits, primarily driven by a reduction in retailer inventories and competitive activity in the current period and pandemic-related pantry loading in the base period. Feminine care organic sales decreased in the low-single digits, driven by category contraction in certain European markets, partially offset by positive product mix due to premium innovation growth in North America and Greater China. Family care organic sales increased in the mid-single digits, primarily driven by increased pricing due to lower promotional activity.
“We delivered another quarter of solid top-line, bottom-line and cash results in what continues to be a challenging operating environment,” said David Taylor, chairman, president, and CEO of P&G.
“We remain focused on executing our strategies of superiority, productivity, constructive disruption, and improving P&G’s organisation and culture. These strategies enabled us to build strong business momentum before the COVID-19 crisis and accelerate our progress during the crisis, and they remain the right strategies to deliver balanced growth and value creation over the long-term.”
