P&G sees profits drop but market growth
Developing countries provide route for future development
Procter & Gamble has reported continued market share growth across all global regions despite first quarter profits falling to $3.08bn, from $3.31bn a year earlier. The decline in profits was attributed to pricing, consumers switching to lower priced products and an unfavourable currency exchange rate. There was however a notable increase in the volume of P&G products in emerging markets due to new product development and an increase in demand which has offset a slump in consumer spending in the US and Europe. The total volume rose 8%, with significant increases in developing markets including China and Brazil.
Beauty net sales were reported to be in line with the same period the previous year at $4.9bn and grooming net sales increased 2% to $1.9bn.
A significant volume increase in developing regions offset a slight decrease in developed regions. The retail hair care category enjoyed double-digit growth in volume in developing countries led by the Pantene and Head & Shoulders brands.
Overall, P&G’s market share increased in all geographic regions compared to the previous year, and was equal or higher in 13 of the top 17 countries and for 17 of P&G's 23 billion-dollar brands.