Proctor and Gamble 2004 Annual Report Download - page 6

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nearly฀half฀of฀Company฀sales฀and฀profits.฀Since฀July฀2001,฀
we’ve฀delivered฀double-digit฀compounded฀annual฀growth฀
across฀the฀following฀Health฀Care฀and฀Beauty฀Care฀businesses:
•฀฀Skin฀Care฀sales฀are฀up฀17%฀behind฀a฀strong฀initiative฀
pipeline,฀including฀Olay฀Total฀Effects,฀Olay฀Daily฀Facials฀฀
and฀Olay฀Regenerist.฀
•฀฀Hair฀Care฀sales฀are฀up฀19%฀as฀we’ve฀strengthened฀global฀
brands฀such฀as฀Pantene฀and฀Head฀&฀Shoulders฀and฀as฀
we’ve฀added฀new฀brands฀like฀Clairol฀Herbal฀Essences.฀
•฀฀Oral฀Care฀sales฀are฀up฀18%฀on฀the฀strength฀of฀a฀solid-base฀
dentifrice฀business฀and฀fast-growing฀new฀segments฀led฀by฀
Crest฀Whitestrips,฀Crest฀Night฀Effects฀and฀Crest฀SpinBrush.฀
•฀฀Pharmaceutical฀sales฀are฀up฀26%฀and฀the฀business฀has฀
become฀profitable฀–฀led฀by฀Actonel,฀which฀has฀grown฀
about฀90%฀a฀year฀over฀the฀three-year฀period.฀Actonel฀
became฀a฀billion-dollar฀brand฀faster฀than฀any฀other฀brand฀
in฀P&G฀history.฀
•฀฀Personal฀Health฀Care฀sales฀are฀up฀15%,฀led฀most฀recently฀
by฀Prilosec฀OTC,฀which฀achieved฀market฀leadership฀within฀
five฀days฀of฀launch฀and฀continued฀to฀grow฀to฀its฀current฀
26%฀share฀of฀the฀heartburn฀remedy฀category.฀
In฀addition,฀profits฀in฀all฀of฀these฀Health฀Care฀and฀Beauty฀
Care฀categories฀are฀up฀double-digits.฀
4.฀Regain฀growth฀momentum฀and฀leadership฀in฀Western฀Europe
We฀have฀turned฀around฀this฀critical฀business฀–฀one฀of฀฀
the฀largest฀consumer฀markets฀in฀the฀world.฀Growth฀has฀฀
been฀broad-based.฀Share฀is฀presently฀growing฀in฀categories฀
representing฀about฀80%฀of฀Western฀Europe฀sales.฀฀
Baby฀Care฀and฀Feminine฀Care฀shares฀are฀now฀50%.฀฀
Laundry฀share฀is฀30%.฀Shampoo,฀Feminine฀Care฀and฀Home฀
Care฀shares฀are฀at฀all-time฀highs.฀
5.฀Drive฀growth฀in฀key฀developing฀markets
Developing฀markets฀now฀account฀for฀about฀20%฀of฀P&G฀
sales.฀P&G฀volume฀in฀key฀markets฀such฀as฀China฀and฀Russia฀
has฀more฀than฀doubled฀in฀the฀past฀three฀years,฀significantly฀
outpacing฀market฀growth.฀In฀China,฀P&G’s฀Laundry฀and฀Oral฀
Care฀market฀shares฀have฀all฀more฀than฀doubled฀in฀the฀past฀
three฀years.฀And฀in฀Russia฀over฀the฀past฀three฀years,฀Laundry,฀
Hair฀Care฀and฀Oral฀Care฀–฀all฀category฀leaders฀–฀have฀each฀
earned฀at฀least฀five฀additional฀share฀points.฀
Room฀to฀Grow
These฀highlights฀demonstrate฀that฀P&G฀strategies฀are฀
working.฀What’s฀most฀important,฀however,฀is฀that฀there’s฀
plenty฀of฀room฀to฀keep฀growing.฀
Global฀market฀shares฀in฀core฀categories฀–฀those฀where฀฀
P&G฀is฀already฀the฀global฀leader฀–฀are฀in฀the฀range฀of฀only฀
20%–36%.฀In฀our฀most฀successful฀markets,฀we฀have฀shares฀
that฀are฀nearly฀twice฀the฀level฀of฀our฀current฀global฀shares.฀
As฀a฀result,฀we฀believe฀we฀can฀continue฀to฀expand฀P&G’s฀
market-share฀leadership฀in฀these฀important฀categories.฀
We’re฀also฀optimistic฀that฀we฀can฀keep฀growing฀in฀big฀
countries.฀For฀example,฀while฀we’ve฀restored฀much฀of฀฀
P&G’s฀leadership฀in฀Western฀Europe,฀we฀are฀still฀not฀back฀฀
to฀peak฀share฀levels฀in฀several฀categories,฀such฀as฀Diapers฀
and฀Laundry.฀Further,฀we฀are฀substantially฀underdeveloped฀฀
in฀health฀and฀beauty.฀In฀Dentifrice,฀we฀have฀only฀a฀13%฀
share฀in฀Western฀Europe,฀versus฀a฀32%฀share฀in฀North฀
America.฀In฀Hair฀Care,฀we฀have฀an฀18%฀share฀in฀Western฀
Europe,฀but฀this฀is฀still฀16฀share฀points฀lower฀than฀in฀฀
North฀America.฀We฀are฀committed฀to฀reaching฀best-in-฀
class฀share฀levels฀in฀all฀major฀Western฀Europe฀categories.
With฀a฀strong฀core฀business฀that฀we฀will฀keep฀strong,฀we’re฀
now฀in฀a฀position฀to฀begin฀pushing฀out฀from฀that฀core฀into฀
new฀markets,฀new฀channels,฀new฀customer฀segments฀and฀
new฀businesses.฀
Beauty฀Care฀is฀a฀good฀example.฀P&G฀has฀about฀a฀10%฀share฀
of฀the฀nearly฀$170฀billion฀global฀beauty฀market.฀With฀billion-
Consistent
Performance
Three฀years฀of฀strong฀performance฀is฀a฀good฀start,฀but฀it’s฀long-term฀
performance฀that฀counts.฀Consistent฀performance฀is฀not฀easy.฀Growing฀
P&G฀sales฀4%–6%฀per฀year฀is฀roughly฀the฀equivalent฀of฀adding฀a฀brand฀
the฀size฀of฀Tide฀–฀every฀year.
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