P&G annual sales rise as grooming segment continues to grow

Procter & Gamble (P&G) has delivered a 2% increase in annual sales to £65 billion ($84 billion), led by continued growth across the grooming segment alongside higher pricing.

Fourth quarter sales reached £15.9 billion ($20.5 billion), unchanged versus the prior year. Increases in volume and higher pricing were offset by unfavourable foreign exchange impacts.

The owner of Olay, Pantene and Gillette saw beauty segment sales rise 3% during the final quarter, spanning April-June 2024.

As part of this, skin and personal care remained unchanged with growth from increased pricing offset by lower sales of the SK-II brand and in Greater China. Meanwhile, hair care sales were up high-single digits, driven by increased pricing and favourable product mix due to the growth of premium products.

Grooming segment sales lifted 7%, boosted by increased pricing primarily in Latin America and volume growth from innovation.

However, the baby, feminine and family care segment saw sales decline 1% versus year ago. Baby Care sales decreased mid-single digits, while feminine care increased low-single digits thanks to increased pricing and favourable product mix.

Sales in the health care segment increased 4% in Q4, with oral care sales up high-single digits due to premium product mix and volume growth in North America and Europe.

Looking ahead, P&G expects FY25 all-in sales growth in the range of 2-4% versus the prior year. The US-based company also expects organic sales growth in the range of 3-5%.

Jon Moeller, Chairman of the Board, President and Chief Executive Officer at P&G, said: "FY24 was another year of strong results for P&G. The team met or exceeded our going-in plans for organic sales growth, core EPS growth, cash generation and cash returned to shareowners in a challenging economic and geopolitical environment.

"As we look forward to FY25, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity – each in-line with our long-term growth algorithm.

"We remain committed to our integrated strategy – a focused product portfolio of daily use categories where performance drives brand choice, superiority (of product performance, packaging, brand communication, retail execution and consumer and customer value), productivity, constructive disruption and an agile and accountable organisation – all aimed at delivering sustainable, balanced growth and value creation."