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Baby Care and Family Care net sales up at P&G

06 Aug '12

5 min read

Operating margin expanded behind loower SG&A expenses and higher gross margin, as higher pricing and manufacturing cost savings more than offset increased commodity costs.

Baby Care and Family Care net sales increased one percent to $4.1 billion on unit volume growth of one percent. Organic sales increased five percent. Pricing increased net sales by four percent. Foreign exchange reduced net sales by four percent. Baby Care volume increased mid-single digits behind double digit growth in developing markets driven by market size growth, product innovation and distribution expansion, and by single digit growth in developed markets due to promotional activity. Volume in Family Care decreased high single digits primarily behind a strong base year period from volume pull forward ahead of price increases. Net earnings increased 13 percent to $540 million primarily due to operating margin expansion. Operating margin increased driven by a higher gross margin. Gross margin increased as price increases and manufacturing cost savings were partially offset by higher commodity costs.
Snacks Divestiture

Net sales for fiscal 2013 are expected to be in line to down two percent versus the prior year, including a negative four percent impact from foreign exchange. Organic sales are expected to increase two to four percent. Pricing is expected to add two percent to sales, and unfavorable product and geographic mix is expected to reduce sales by one percent. Diluted net earnings per share are expected to be in the range of $3.61 to $3.85. Core EPS is expected to be in the range of $3.80 to $4.00, consistent with the preliminary outlook provided by the Company. Core EPS estimates exclude non-core restructuring charges of $0.15 to $0.19.

The Procter & Gamble Company