US cosmetics giant Procter & Gamble has reported relatively static sales growth in its latest quarterly earnings report.
Overall, net sales grew by a total of 2%, the same as the previous quarter, whilst organic growth for the company was 4%.
Segments singled out as effective growth areas were the baby, feminine and family care segments, which increased behind “product innovation in North America,” in addition to a strong baby care market in developing regions.
P&G CEO A.G. Lafley put a positive spin on the results, saying: “P&G’s first quarter results were consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year.”
“We have good market share momentum, a number of strong innovations coming to market over the balance of the year , and cost savings from productivity efforts that will continue to build.”
Innovation in North America
The company's net earnings reached $21.2bn for the fiscal year, with increases fuelled by a growth in organic sales.
The company has been widely recognized by IRI for their innovation in 2012, with 6 of their products making the top 20 list including Olay Body Collections and Clairol Nice & Easy Color Foam.
In their babycare line, P&G have launched extensive upgrades and improvements to their legendary Pampers brand, including new technology which will make them more absorbent and effective.
They have also recently expanded brands such as Gilette Venus into South America.
Lafley said: “We remain focused on driving innovation and productivity. We continue to improve operating discipline and execution every day to create value for consumers and shareowners.”
The company has reported consistent steady- though not spectacular- growth in net sales since 2008, with results standing at US$84bn in June 2013 compared to around US$83.7bn in 2012.
A stand-out this year was the company's organic sales growth of 6% in baby, feminine and family care. P&G's grooming and beauty sections also reported small increases.
In 2012, the company reported a total of 3% organic growth, meaning that its development has slowed somewhat.