“Earlier this month, we completed the last major step in P&G’s portfolio transformation with the Beauty Brands divestiture to Coty Inc. We are now focusing all our efforts on 10 large, structurally attractive categories where P&G holds leading positions,” explains chairman, president and CEO David Taylor, in the P&G press release about the results.
That deal will change the shape of P&G’s business substantially, as well as the beauty industry landscape. Coty is now squarely among the top personal care and cosmetics corporations in the world. The recently completed brands’ transfer “marks a new chapter in Coty’s rich heritage,” Camillo Pane, Coty’s new CEO told the press this month. “With this merger, we have brought together a powerful portfolio of much loved beauty brands and some of the world’s most talented people in beauty and consumer goods.”
From this point forward
With the sale behind it, P&G is moving ahead: “There is still more work to do to get back to the levels of balanced top- and bottom-line growth and cash generation that will consistently put P&G shareholder value creation among the best in our industry,” says Taylor.
Last year for this quarter the company reported $16,527m in net sales. This year that figure is $16,518m. And P&G leadership isn’t disappointed. “Our first quarter results mark a good start to the fiscal year,” Taylor tells the press. “We delivered broad-based organic sales growth improvement across product categories and markets, as well as strong cost savings.”
Personal care performance
Thanks to higher prices on hair care, skin care, and personal care product as well as an increase in organic volume, P&G’s beauty sales were up 3% over the same quarter last year. Brands that led this growth include the SK-II skin care brand, and hair brands Pantene and Head & Shoulders.
An uptick in sales volume for P&G shave care products helped the company’s grooming segment grow organically by 3% year-over-year as well.