Proctor and Gamble 2004 Annual Report Download - page 21

Fiscal฀Year฀2004฀Results
The฀Beauty฀Care฀business฀unit฀delivered฀excellent฀results฀in฀
fiscal฀2004.฀Unit฀volume฀increased฀37%,฀sales฀grew฀40%฀
and฀net฀earnings฀increased฀22%.฀This฀excellent฀performance฀
was฀driven฀by฀a฀combination฀of฀double-digit฀organic฀growth฀
and฀the฀acquisition฀of฀Wella.฀Wella฀joined฀P&G฀Beauty฀Care฀
in฀September฀2003฀and฀added฀approximately฀$3.3฀billion฀to฀
Beauty฀Care฀sales฀in฀fiscal฀2004.฀
Beauty฀Care’s฀organic฀growth฀was฀led฀by฀brands฀that฀฀
have฀been฀favorites฀of฀consumers฀for฀many฀years.฀Head฀&฀
Shoulders฀delivered฀18%฀global฀volume฀growth฀and฀became฀
P&G฀Beauty฀Care’s฀fifth฀billion-dollar฀brand,฀joining฀Pantene,฀
Always,฀Olay฀and฀Wella.฀Pantene฀passed฀the฀$2฀billion฀฀
sales฀mark฀and฀strengthened฀its฀position฀as฀the฀world’s฀
leading฀hair฀care฀brand.฀Olay฀grew฀global฀sales฀26%฀with฀
new฀innovations฀like฀Regenerist฀and฀continued฀growth฀฀
of฀the฀Total฀Effects฀and฀Daily฀Facials฀product฀lines.฀Always฀
feminine฀care฀products฀grew฀global฀volume฀double-digits฀
and฀Tampax฀Pearl฀has฀helped฀grow฀the฀brand฀to฀over฀46%฀
of฀the฀U.S.฀tampon฀market.฀Lacoste,฀with฀annual฀volume฀฀
up฀nearly฀400%฀in฀just฀two฀years,฀has฀helped฀make฀P&G฀a฀
global฀leader฀in฀men’s฀fine฀fragrances.
Beauty฀Care
What’s฀Working
Leadership฀innovation฀and฀holistic฀marketing฀programs฀฀
are฀the฀cornerstones฀of฀P&G฀Beauty’s฀growth฀strategy.฀We฀
are฀continuously฀improving฀the฀performance฀of฀our฀existing฀
products฀and฀launching฀new฀products฀to฀meet฀previously฀
unmet฀consumer฀needs.฀Products฀like฀Olay฀Total฀Effects,฀฀
with฀our฀proprietary฀VitaNiacin฀ingredient,฀established฀Olay฀
as฀the฀leader฀in฀anti-aging฀skin฀care.฀We฀then฀followed฀฀
with฀Olay฀Regenerist฀–฀developed฀from฀wound-healing฀
science฀and฀marketed฀to฀Olay฀skin฀care’s฀most฀demanding฀
consumers฀as฀an฀anti-aging฀alternative฀to฀cosmetic฀medical฀
procedures.฀Next,฀we฀built฀upon฀the฀success฀of฀Regenerist฀in฀
the฀U.S.฀and฀expanded฀it฀to฀delight฀consumers฀in฀all฀corners฀
of฀the฀world.฀Priced฀at฀the฀top฀end฀of฀mass฀market฀skin฀care฀
products,฀Regenerist฀is฀driving฀outstanding฀growth฀in฀China฀
and฀Southeast฀Asia.฀
In฀addition,฀Beauty฀Care฀is฀successfully฀complementing฀
innovation฀with฀acquisitions.฀In฀2001,฀the฀Clairol฀acquisition฀
moved฀P&G฀into฀the฀growing฀hair฀colorants฀category.฀In฀
2003,฀the฀addition฀of฀Wella฀connected฀P&G฀to฀the฀cutting฀
edge฀of฀hair฀trends฀–฀the฀professional฀hair฀care฀market.฀Both฀
acquisitions฀have฀expanded฀P&G’s฀Beauty฀portfolio,฀added฀
world-class฀brands฀and฀strengthened฀P&G’s฀capabilities฀to฀
win฀long฀term฀in฀Beauty฀Care.
Beauty฀Care฀is฀an฀attractive฀market.฀It฀has฀high฀margins,฀฀
low฀capital฀intensity฀and฀is฀growing฀worldwide฀at฀a฀pace฀฀
well฀ahead฀of฀population฀growth.฀Combined฀with฀P&G’s฀
historical฀capabilities฀in฀building฀leadership฀brands฀and฀
leveraging฀scale฀for฀low฀costs,฀Beauty฀Care฀should฀be฀a฀
growth฀leader฀for฀P&G฀for฀many฀years฀to฀come.
Head฀&฀Shoulders
In฀fiscal฀year฀2004,฀Head฀&฀
Shoulders฀became฀Beauty฀Care’s฀
fifth฀billion-dollar฀brand.฀Over฀฀
the฀past฀three฀years,฀global฀sales฀
growth฀for฀Head฀&฀Shoulders฀has฀
averaged฀16%฀per฀year.
Wella
Wella฀joined฀the฀P&G฀family฀฀
in฀September฀2003,฀making฀฀
P&G฀one฀of฀the฀largest,฀most฀
profitable฀Beauty฀Care฀companies฀฀
in฀the฀world.฀
Olay
Olay฀is฀one฀of฀P&G’s฀fastest-growing฀
billion-dollar฀brands,฀with฀global฀sales฀
up฀26%฀in฀2004.฀Regenerist,฀Olay’s฀
latest฀breakthrough฀in฀anti-aging,฀is฀
fueling฀strong฀growth฀in฀the฀U.S.฀as฀
well฀as฀in฀China฀and฀Southeast฀Asia.
Pantene
The฀Pantene฀brand฀passed฀a฀
significant฀growth฀milestone฀in฀
fiscal฀year฀2004,฀delivering฀฀
over฀$2฀billion฀in฀annual฀sales.
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Net฀Sales
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Net฀Earnings
(in฀billions฀of฀dollars)
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