Proctor and Gamble 2004 Annual Report Download - page 23
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Please find page 23 of the 2004 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.FiscalYear2004Results
BabyandFamilyCaredeliveredanotherstrongyearof
volume,salesandprofitgrowth.Unitvolumegrew6%,
netsalesgrew8%andnetearningsincreased13%.
TheBabyCarebusinesscontinueditsstrongglobalgrowth,
increasingunitvolumedouble-digitsandgrowingglobal
marketshare.WesternEuropeandLatinAmericaledthe
way.WesternEuropegrewbabycaremarketshareto50%,
afive-yearhigh,andLatinAmericagrewdiapervolumeby
almost30%.IntheU.S.,Pampersdeliveredmid-single-digit
volumegrowthbehindcontinuingleverageoftheBaby
StagesofDevelopmentandBabyDryproductlines.
FamilyCaredeliveredmodestvolumegrowthinadifficult
competitiveenvironment.Despitecompetitivemarketing
spendingincreasesandnewproductlaunches,Charminand
Bountymaintainedmarketshareandproductperformance
leadershipversuskeycompetitors.Bothbrandsannounced
priceincreaseseffectiveinJuly2004topartiallyoffsetrising
commoditycosts.Thebusinessiswellpositionedforprofit
growthinlinewithcompanytargetsinfiscal2005.
What’sWorking
ThestrongresultsdeliveredbyBabyandFamilyCareare
adirectoutcomeofdelightingconsumerswithbetter
performingproductsthatrepresentgoodvalueforthe
money,andarelentlessfocusoncostreductionandcash
generation.Wehavestrengthenedallelementsofour
innovationsystem–betterunderstandingconsumers’desires,
reducinginnovationcostsandleadtimes,andcreatingholistic
marketingplansthatresonateateveryconsumertouchpoint.
Wearedesigningnewproducts,suchasPampersBásicain
LatinAmerica,thataretailoredtomeettheuniqueproduct
performanceandaffordabilityneedsoflower-income
consumers.Pampersdiapervolumehasgrowndouble-digits
ineachLatinAmericanmarketsincetheBásicalaunch.
WehaveincreasedmarketshareinWesternEuropeby
continuingtoleverageourBabyStagesofDevelopment
andBabyDrydiaperlinesandbyrapidlygrowingourKandoo
toddlerpersonalcarebusiness.
OurinvestmentinBabyCare’sstandardizedmanufacturing
platformispayingoffaswebetterleverageourscalefor
costsavingsandfasterspeedtomarketwithnewproducts.
Weareimprovingmanufacturingproductivity,whichhelps
reducethecapitalinvestmentnecessarytomeetincreased
consumerdemand.Weintroducedoursoftest,strongest,
thickestCharmineverlastyearandsimultaneouslyincreased
capacityandloweredcosts.Cost-savingseffortshaveallowed
ustomaintainsharpconsumervalue,investbehindnew
productswithstrongmarketingprograms,offsetrising
commoditycosts,andimproveprofitmarginsandcash
generation–allofwhicharecriticaltodeliveringsuperior
shareholderreturns.
CharminUltra
ThelatestupgradetoCharmin
Ultrahasmaintainedthebrand’s
advantagesinsoftness,thickness,
absorbencyandwetstrength
againstallcompetitors.
Pampers
PampersbecameP&G’sfirst
brandtodeliverover$5billion
inannualsales.
Bounty
Inearly2004,Bountylaunched
anewarrayofprintsandpackage
formats.Bountyistheclearmarket
leaderintheU.S.,withover40%
shareofcategoryvalue.
PampersBásica
PampersBásica,designedtobroaden
thebaseofconsumerswhocan
appreciateandaffordPampers,
helpedincreasebabycareshipments
byalmost30%inLatinAmerica.
21
BabyandFamilyCare
NetSales
(inbillionsofdollars)
NetEarnings
(inmillionsofdollars)