Proctor and Gamble 2003 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2003 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

A.G. Lafley
Chairman of the Board,
President and Chief Executive
Fellow Shareholders,
Fiscal 2003 was a year of significant
progress for Procter & Gamble –
our best overall performance in
nearly a decade.
• Volume was up 8%.
• Sales were up 8% to $43.4 billion.
• Earnings were up 19% to $5.2 billion; earnings per share were $3.69, up 19%.
• The Company’s multi-year restructuring program is now complete, a full year ahead of
schedule. Restructuring program charges for the year were $538 million.
• Earnings per share increased 14%, excluding the impact of the restructuring program.
• Net earnings margins reached the highest level in more than 50 years.
• Total Shareholder Return outperformed the Dow Jones Industrial Average and the S&P 500.
• P&G has declared a dividend increase of 11%, the 48th consecutive year of increased
dividend payments.
These excellent results represent broad-based strength:
• All five Global Business Units grew earnings.
• Six of seven Market Development Organizations delivered top-line growth.
• 19 of the top 20 global brands grew volume.
• P&G brands worldwide grew share in categories accounting for nearly 80% of sales.
Most important, these results were driven from P&G’s core existing businesses, in a challenging
global economy and political environment. In fact, 100% of this year’s growth was organic.
The key element of P&G’s growth strategy can most simply be described as growth from the
core. We are building on P&G’s core foundation of categories and brands, customers and
countries, capabilities and competencies to deliver long-term, sustainable growth.
That, of course, is the key challenge. It’s long-term performance that counts. P&G focuses
on strategies that do what is right for the long-term health of the business. Over the past 20
years, P&G has delivered an annualized Total Shareholder Return of nearly 17%, ahead of
both the Dow Jones Industrial Average and the S&P 500.