Proctor and Gamble 2005 Annual Report Download - page 18

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Net Sales
(in billions of dollars)
2004 20052003
17.1
19.5
12.2
Net Earnings
(in billions of dollars)
2004 20052003
2.3
2.9
1.9
Fiscal฀Year฀2005฀Results
P&G฀Beauty฀delivered฀its฀third฀consecutive฀year฀of฀double-
digit฀growth฀in฀volume,฀sales,฀and฀profit.฀Volume฀increased฀
12%,฀sales฀increased฀14%,฀and฀net฀earnings฀increased฀22%.
This฀industry฀leading฀performance฀was฀driven฀mainly฀by฀
broad-based฀organic฀growth฀across฀geographies฀and฀brands.฀
Each฀of฀our฀top฀10฀countries฀delivered฀higher฀sales฀than฀a฀
year฀ago,฀with฀solid฀gains฀in฀both฀developed฀and฀developing฀
markets.฀Global฀market฀shares฀continue฀to฀grow,฀with฀most฀
of฀our฀leading฀brands฀at฀record฀highs.
Each฀of฀our฀billion-dollar฀brands฀–฀five฀in฀total฀–฀grew฀sales฀
and฀market฀share.฀Pantene,฀the฀world’s฀leading฀hair฀care฀
brand฀with฀over฀$2฀billion฀in฀sales฀and฀over฀10%฀global฀
share,฀posted฀13%฀volume฀growth.฀Head฀&฀Shoulders,฀the฀
world’s฀second-largest฀shampoo฀brand,฀grew฀volume฀15%,฀
achieving฀record฀global฀market฀share฀of฀nearly฀10%.
Olay,฀one฀of฀P&G’s฀fastest฀growing฀billion-dollar฀brands,฀
grew฀global฀volume฀nearly฀30%,฀driven฀by฀continued฀
momentum฀of฀the฀Regenerist฀and฀Total฀Effects฀lines,฀and฀
new฀innovations฀like฀Olay฀Quench,฀a฀hand฀and฀body฀
moisturizing฀treatment฀with฀superior฀skin฀benefits.฀Always,฀
the฀world’s฀leading฀feminine฀care฀brand,฀grew฀volume฀by฀
11%฀and฀reached฀record-high฀global฀market฀share฀of฀22%.฀
In฀addition,฀the฀Prestige฀and฀Professional฀business฀posted฀
strong฀top-line฀gains฀with฀global฀sales฀up฀double฀digits.฀
P&G฀Beauty฀also฀has฀a฀strong฀stable฀of฀potential฀billion-dollar฀
brands฀with฀sales฀in฀the฀range฀of฀$500฀million฀to฀$1฀billion฀
which฀are฀driving฀growth.฀Hugo฀Boss,฀along฀with฀Lacoste฀–฀
which฀is฀now฀10฀times฀bigger฀than฀when฀we฀acquired฀the฀
license฀in฀2001฀–฀further฀strengthened฀our฀global฀leadership฀
position฀in฀men’s฀fine฀fragrances.฀SK-II,฀our฀prestige฀skin฀care฀
brand,฀grew฀volume฀13%฀behind฀innovations฀such฀as฀฀
De-Wrinkle฀Essence฀and฀Facial฀Lift฀Emulsion.
With฀these฀many฀successes,฀we฀also฀face฀some฀challenges.฀
Our฀growth฀last฀year฀in฀U.S.฀Hair฀Care฀did฀not฀meet฀our฀high฀
expectations,฀and฀we฀are฀pruning฀underperforming฀brands.฀
In฀hair฀colorants,฀we฀are฀still฀rebuilding฀our฀innovation฀
pipeline.฀We฀compete฀against฀outstanding฀companies฀with฀
long฀histories฀in฀beauty,฀and฀we฀never฀underestimate฀their฀
ability฀to฀innovate฀and฀attract฀the฀attention฀of฀consumers.฀
2005฀was฀a฀very฀good฀year,฀and฀we฀are฀prepared฀for฀the฀
challenges฀of฀2006.
14
Top฀10฀P&G฀Beauty฀Brands฀(Net฀Sales)
P&G฀BEAUTY฀CONTINUED฀TO฀DELIGHT฀CONSUMERS฀
WITH฀NEW฀PRODUCT฀INNOVATIONS฀ON฀LEADING฀
BRANDS฀IN฀NORTH฀AMERICA.
WELLA’S฀PROFESSIONAL฀
HAIR฀CARE฀BUSINESS฀
DELIVERED฀8%฀SALES฀
GROWTH฀IN฀FISCAL฀YEAR฀
2005฀–฀THE฀SECOND฀YEAR฀
FOLLOWING฀ACQUISITION.
NATURELLA฀FEMININE฀
CARE฀GLOBAL฀VOLUME฀
MORE฀THAN฀DOUBLED
BEHIND฀EXPANSION
IN฀LATIN฀AMERICA
AND฀CENTRAL฀AND
EASTERN฀EUROPE.