P&G’s Leaner, Stronger Beauty Business Drives 10% Growth
This article was originally published in The Rose Sheet
Procter & Gamble beauty sector sales grow 10% in its latest quarter on strength of anti-aging skin care products globally and across price tiers. Firm also announces to purchase First Aid Beauty, further diversifying its skin care portfolio with a lineup of products sold in specialty retail stores and priced between P&G's SK-II and Olay brands.
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Fluocaril and Parogencyl are “well-known” toothpastes that have garnered “strong endorsement from health professionals,” Unilever says. The brands, identified by analysts as potential candidates for sale, are latest in P&G’s ongoing trimming of lower-selling lines.
P&G reported total beauty division sales grew 5% to $3.29bn, with a 20% jump in SK-II offset somewhat by low single-digit growth in hair care. Investors rewarded the firm’s better-than-expected net sales results with same-day 9% bump in its share price.
Firm scans health care market for OTC drug properties meeting consumers’ growing demand for non-Rx products, says CFO Jon Moeller. He says P&G is well-positioned to "brand-build" acquired assets given its distribution network in oral, personal and feminine care, and its cost-cutting capabilities.