Proctor and Gamble 2005 Annual Report Download - page 20

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Net Sales
(in billions of dollars)
2004 20052003
15.7
17.7
19.7
2.3
Net Earnings
(in billions of dollars)
2004 20052003
1.9
1.6
Fiscal฀Year฀2005฀Results
P&G฀Family฀Health฀delivered฀a฀strong฀year฀of฀volume,฀sales,฀
and฀profit฀growth.฀Unit฀volume฀grew฀8%,฀net฀sales฀grew฀
11%,฀and฀net฀earnings฀increased฀18%.฀The฀growth฀has฀been฀
broad-based฀across฀the฀portfolio฀of฀leading฀brands.฀Six฀of฀
P&G’s฀17฀billion-dollar฀brands฀are฀in฀Family฀Health฀–฀Pampers,฀
Crest,฀Bounty,฀Charmin,฀Iams,฀and฀Actonel฀–฀and฀Vicks฀and฀
Prilosec฀OTC฀are฀in฀the฀next฀tier฀of฀brands฀with฀annual฀sales฀
between฀$500฀million฀and฀$1฀billion.฀All฀eight฀of฀these฀brands฀
delivered฀solid฀global฀volume฀growth฀in฀fiscal฀year฀2005.
Baby฀Care฀and฀Family฀Care฀led฀the฀way฀with฀combined฀฀
sales฀up฀11%฀and฀profits฀up฀28%.฀Baby฀Care฀continued฀฀
to฀extend฀its฀global฀leadership฀with฀global฀market฀share฀of฀
37%฀behind฀sound฀product฀initiatives,฀holistic฀marketing,฀
and฀expanded฀product฀offerings฀to฀lower-income฀consumers.฀
Pampers฀also฀launched฀Kandoo฀children’s฀personal฀care฀
products฀in฀North฀America฀and฀expanded฀the฀lineup฀in฀
Western฀Europe,฀further฀extending฀the฀franchise฀from฀babies฀
to฀younger฀children.฀Family฀Care฀made฀strong฀progress฀
behind฀its฀Bounty,฀Charmin,฀Puffs,฀and฀Tempo฀brands฀in฀all฀
regions฀where฀we฀operate.฀In฀the฀core฀market฀of฀the฀U.S.,฀
Family฀Care฀market฀share฀rose฀to฀over฀30%.฀In฀addition,฀
Baby฀Care฀and฀Family฀Care฀have฀successfully฀executed฀price฀
increases฀to฀offset฀higher฀commodity฀costs,฀which฀also฀
helped฀year-on-year฀profit฀growth.
In฀Health฀Care,฀sales฀were฀up฀11%฀and฀profits฀up฀8%.฀
Pharmaceuticals฀and฀Personal฀Health฀Care฀led฀the฀way฀with฀
excellent฀growth฀on฀Actonel฀and฀Prilosec฀OTC.฀Actonel฀฀
has฀now฀achieved฀a฀33%฀global฀share฀of฀bisphosphonates฀฀
in฀the฀fast-growing฀osteoporosis฀market.฀Prilosec฀OTC฀
achieved฀a฀U.S.฀share฀of฀35%.฀Oral฀Care฀delivered฀modest฀
volume฀growth,฀despite฀aggressive฀competitive฀activity฀and฀
contraction฀of฀the฀tooth-whitening฀market,฀based฀on฀strong฀
performance฀in฀China฀and฀Russia฀on฀the฀Crest฀and฀Blend-฀
a-Med฀brands.฀In฀the฀U.S.,฀Crest฀extended฀its฀franchise฀฀
into฀oral฀rinses฀with฀the฀launch฀of฀Crest฀Pro-Health฀Rinse,฀฀
a฀no-alcohol฀formula฀that฀kills฀germs฀that฀cause฀plaque฀฀
and฀gingivitis฀without฀the฀burn฀of฀alcohol.฀Pet฀Health฀&฀
Nutrition฀posted฀solid฀top-line฀results,฀led฀by฀growth฀in฀฀
North฀America฀and฀Japan.฀Iams฀is฀now฀the฀single฀largest฀pet฀
care฀brand฀in฀the฀U.S.฀
What’s฀Working
We฀have฀sharpened฀our฀focus฀on฀keeping฀families฀healthy฀
for฀life.฀We฀do฀this฀by฀delighting฀consumers฀with฀better฀
performing฀products฀that฀represent฀good฀value฀for฀the฀
16
Top฀10฀P&G฀Family฀Health฀Brands฀(Net฀Sales)
Charmin฀
posted฀8%฀
volume฀
growth฀
behind฀
product฀
innovations฀
such฀as฀
MegaRoll.
Crest฀toothpaste฀share฀
in฀China฀increased฀>฀8%฀
points฀to฀over฀25%.
Prilosec฀OTC
market฀share฀reached
35%
of฀the฀U.S.฀heartburn฀
treatment฀segment.
P&G฀Family฀Health