Proctor & Gamble expect organic sales growth of 3-5% in its new fiscal year as it attempts its sales drive to reach 1bn new consumers over the next five years according to the Financial Times.
The world’s largest consumer goods company expected the majority of sales to come from emerging markets. Bob McDonald, who took over as chief executive last year, stated that fourth-quarter and full-year results showed that his strategy of pursuing profitable top-line growth through increased innovation and marketing was working.
Net sales rose 5 per cent to $18.9bn during the quarter, while full-year net sales were up 3 per cent against a year ago, to $78.9bn.
Volume unit sales increased by 8 per cent, with emerging markets growing at more than twice the rate of the US and Western Europe.
P&G, the world’s biggest advertiser, said it increased its advertising spending by about $1bn during the year, to $8.6bn, close to 11 per cent of sales.
“The reason we are growing market share on 60 per cent of our business today is that we are supporting it with advertising, as opposed to a year ago,” Mr McDonald said. |