Proctor and Gamble 2008 Annual Report Download - page 5

&
&

Averageannual  2008 2001–2008
OrganicSalesGrowth
(1)  5% 6%
Earnings-per-ShareGrowth 
20% 13%(2)
FreeCashFlowProductivity
(3)106% 118%

Grow from the core: Leading Brands, Big Markets,
Top Customers
Volumeup7%,
onaverage,for
P&G’s24billion-
dollarbrands
(4)
Volumeup7%,
onaverage,for
P&G’stop16
countries
(5)
Volumeup8%,
onaverage,
forP&G’stop10
retailcustomers
(5)
Develop faster-growing, higher-margin, more asset-efcient
businesses
Beautysales
morethan
doubledto
$19.5billion;
protstripledto
$2.7billion
HealthCare
salesmorethan
doubledto
$14.6billion;
protincreased
4-foldto
$2.5billion
HomeCare
salesmorethan
doubled;prots
morethantripled
Accelerate growth in developing markets and among
low-income consumers
Developing
marketsalesup
18%peryear
Overone-third
oftotalcompany
salesgrowth
fromdeveloping
markets
Developingmarket
protmargins
comparableto
developedmarket
margins
(1)Organicsalesexcludetheimpactsofacquisitions,divestituresandforeignexchange,
whichwere6%,onaverage,in2001-2008.
(2)2001EPSexcludes$0.61pershareofcostsfromtheOrganization2005restructuring
programandamortizationofgoodwillandindenite-livedintangibleassets.
(3)Freecashowproductivityistheratiooffreecashowtonetearnings.
(4)Excludestheimpactofaddingnewlyacquiredbillion-dollarbrandstotheportfolio.
(5)ExcludesimpactofaddingGillette.
P&G’ssalesgrowthinscal2008camefromadiversemixof
businessesandwasdrivenprimarilybyinnovation.
BabyandFamilyCareorganicsalesincreased8%.Charmin
•
delivereddouble-digitorganicvolumegrowthbehindthe
introductionofCharminUltraStrongandacompleterestage
ofthebrandline-up.Pampersdelivereddouble-digitvolume
growth—andbecameP&G’srst$8billionbrand—behind
thecontinuedstrengthofPampersBabyStagesof
Development.BountyintroducedBountyExtraSoftand
upgradedBountyBasic.
FabricandHomeCaregreworganicsales6%,drivenbyliquid
•
laundrydetergentcompaction—adisruptiveinnovation
rolledoutacrosstheentireNorthAmericalaundryportfolio—
alongwithstrongproductinnovationonTide,Gain,Ariel,
Downy,andFebreze.
Beautyorganicsalesincreased4%,behindthecontinuing
•
successofOlayDenityandRegeneristproductinnovation,
newproductandpackageinnovationonHead&Shoulders,
andarevolutionarynewhomehair-colorantcalledPerfect10
onNice‘NEasy.
Groominggreworganicsales4%,ledbymorethan40%
•
top-linegrowthonthesuperiorFusionmaleshavingsystem.
FusionbecameP&G’s24thbillion-dollarbrand.
HealthCareorganicsalesgrew3%,drivenbystronginnovation
•
acrosstheHealthCarebusiness:CrestPro-HealthNightPaste
andRinse,Oral-BCross-ActionPro-HealthBrush,AlwaysClean
andAlwaysFresh,andcomfortupgradesontheNaturella
brand.
Snacks,CoffeeandPetCareorganicsalesincreased4%,led
•
bythelaunchofDunkinDonuts®retailcoffee,anumberof
Pringlesinitiatives—includingRiceInfusion,ExtremeFlavors
andPringlesStix—andIamsProactiveHealthfordogsand
HealthyNaturalsforcats.
Growthwasbroad-basedacrossallgeographicregions,with
mid-single-digitsalesgrowthindevelopedmarketsanddouble-
digitsalesgrowthindevelopingmarkets.
WesuccessfullycompletedtheintegrationofGillette,exceeding
costsynergyanddilutiontargets.Revenuesynergiesareontarget,
withsignicantupsidepotentialoverthenextthreetoveyears.
We’vejustbeguntoleveragetheGilletteandOral-Bbrands,
bothstrongplatformsforinnovation.
TheProcter&GambleCompany 3