Proctor and Gamble 2004 Annual Report Download - page 25

Fiscal฀Year฀2004฀Results
The฀Health฀Care฀business฀unit฀delivered฀its฀fifth฀consecutive฀
year฀of฀strong฀double-digit฀growth฀in฀volume,฀sales฀and฀
profit.฀Volume฀increased฀18%,฀sales฀grew฀21%฀and฀net฀
earnings฀increased฀36%฀behind฀outstanding฀new฀product฀
innovations฀and฀improving฀profit฀margins.
All฀of฀the฀Health฀Care฀business฀segments฀delivered฀great฀
results฀in฀fiscal฀2004.฀Actonel฀led฀the฀growth฀in฀
Pharmaceuticals,฀building฀global฀value฀share฀in฀the฀fast-
growing฀osteoporosis฀treatment฀category฀to฀become฀฀
a฀billion-dollar฀brand.฀Personal฀Health฀Care฀growth฀was฀฀
fueled฀by฀the฀launch฀of฀Prilosec฀OTC฀for฀the฀treatment฀฀
of฀frequent฀heartburn.฀Prilosec฀OTC฀is฀widely฀regarded฀฀
as฀one฀of฀the฀most฀successful฀over-the-counter฀health฀care฀
launches฀ever.฀The฀Crest฀brand฀became฀the฀clear฀Oral฀฀
Care฀market฀leader฀in฀the฀U.S.฀Crest฀Whitening฀Expressions฀฀
and฀Vivid฀White฀drove฀share฀in฀the฀U.S.฀toothpaste฀฀
segment฀to฀over฀33%,฀and฀Crest฀Whitestrips฀Premium฀฀
drove฀U.S.฀tooth฀whitening฀share฀to฀over฀70%.฀Iams฀
continued฀to฀deliver฀steady฀growth,฀posting฀its฀fifth฀
consecutive฀year฀of฀U.S.฀market฀share฀increases.฀Iams฀is฀฀
now฀the฀#1฀pet฀nutrition฀brand฀in฀the฀U.S.
Health฀Care
What’s฀Working
P&G’s฀Health฀Care฀business฀continues฀to฀be฀driven฀by฀a฀
powerful฀combination฀of฀breakthrough฀innovation,฀strategic฀
acquisitions฀and฀alliances,฀and฀operating฀cost฀discipline.฀฀
In฀the฀last฀four฀years฀alone,฀new฀health฀care฀innovations฀
have฀contributed฀more฀than฀$1.5฀billion฀in฀incremental฀sales.฀฀
This฀growth฀comes฀from฀a฀strict฀application฀of฀P&G’s฀฀
“launch฀and฀leverage”฀approach.฀
First,฀Health฀Care฀develops฀and฀launches฀outstanding฀new฀
products฀with฀holistic฀introductory฀marketing฀plans฀and฀
excellent฀in-store฀execution.฀Prilosec฀OTC฀is฀an฀excellent฀
example฀of฀P&G’s฀initiative฀launch฀capabilities.
Second,฀we฀leverage฀these฀new฀products฀with฀strong฀
marketing฀support฀and฀product฀improvements฀for฀several฀
years฀after฀initial฀launch.฀Two฀great฀examples฀of฀this฀“launch฀
and฀leverage”฀approach฀are฀Crest฀Whitestrips฀and฀Actonel,฀
which฀have฀continued฀to฀deliver฀strong฀sales฀growth฀in฀฀
their฀third฀and฀fourth฀years฀in฀the฀market,฀respectively.฀
The฀acquisition฀of฀Crest฀SpinBrush฀in฀2001฀and฀Glide฀Floss฀
last฀year฀have฀helped฀make฀P&G฀a฀leading฀player฀in฀all฀major฀
segments฀of฀the฀oral฀care฀market.฀Upstream฀development฀
alliances฀with฀pharmaceutical฀companies฀have฀helped฀us฀
develop฀a฀full฀pipeline฀of฀life-enhancing฀drugs฀that฀are฀at฀
various฀stages฀of฀testing.฀And฀while฀we฀invest฀to฀support฀
new฀product฀launches฀and฀research฀to฀develop฀tomorrow’s฀
breakthrough฀new฀products,฀we฀are฀in฀tight฀control฀of฀
operating฀costs.฀Only฀with฀strict฀cost฀control฀can฀we฀deliver฀
new฀products฀at฀a฀great฀value฀for฀consumers฀while฀still฀
delivering฀an฀excellent฀return฀for฀our฀shareholders.
Iams
Iams฀latest฀dog฀and฀cat฀nutrition฀
innovation฀delivers฀a฀significant฀taste฀
improvement฀for฀better฀feeding฀฀
and฀includes฀seven฀nutrients฀for฀
healthy฀hearts.
Prilosec฀OTC
Prilosec฀OTC฀became฀the฀leading฀
over-the-counter฀heartburn฀remedy฀฀
in฀the฀U.S.฀within฀five฀days฀of฀launch.฀
First฀year฀retail฀sales฀are฀expected฀฀
to฀approach฀$400฀million.
Actonel
In฀fiscal฀year฀2004,฀Actonel฀became฀
P&G’s฀third฀Health฀Care฀brand฀to฀
reach฀$1฀billion฀in฀global฀sales.฀
Actonel฀reached฀the฀billion-dollar฀
milestone฀in฀just฀four฀years฀based฀
on฀global฀alliance฀sales.
Crest
Crest฀worldwide฀sales฀grew฀more฀
than฀13%฀in฀fiscal฀year฀2004,฀
behind฀new฀innovations฀like฀Crest฀
Whitestrips฀Premium,฀Crest฀Vivid฀
White฀and฀Crest฀Whitening฀
Expressions.฀
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Net฀Sales
(in฀billions฀of฀dollars)
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Net฀Earnings
(in฀millions฀of฀dollars)
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