Gillette and Gain fuel P&G sales

29 October 2010

CINCINNATI: P&G have reported an 8% global sales upturn for the first quarter of the fiscal year, with growth boosted by the firm's Gillette and Gain brands.

Net sales also rose 2% year-on-year to reach $20.1bn (€14.5bn, £12.6bn).

Business has been boosted by new products such as low-cost Gillette razors in India and Gain dishwashing liquid, which is targeted at Hispanic consumers in the US.

Double-digit sales growth were recorded for emerging markets, while overall global organic sales - excluding merger activity or foreign exchange volatility - rose by 4% over the three month period.

P&G also predicts an increase of between 3% and 5% for net sales over the full fiscal year, with organic sales growing by 4-6%.

Although higher commodity costs had lowered gross margins by 70 basis points, P&G reports that the impact on operating margins has been at least partially offset by lower costs during the first quarter.

The company's policy involves maintaining price premiums in developed markets and attracting customers with new products.

These include Gillette's new Fusion ProGlide razor, which has been particularly successful in the US.

Encouraging moderate growth in developed markets is then supported by rapid expansion into emerging markets where sales gains have been considerable.

McDonald said: "While the macroeconomic environment remains challenging, the solid first-quarter results demonstrate that our strategy is working."

Data sourced from; additional content by Warc staff