Proctor and Gamble 2015 Annual Report Download - page 35

33 The Procter & Gamble Company
R R D  R
 millions 2015
Change
s. 2014 2014
Change
s. 201
olume NA 1 NA 4
Net sales 22,2 (5) $23,509 
Net earnings 2,5 (5) $2,771 (2)
 of net sales 11. 0 bps 11.8 (30) bps
Fiscal year 2015 comparedwithfiscalyear 2014
Fabric Care and Home Care net sales decreased 5 to $22.3
billion in 2015 on a 1 increase in unit volume. Organic sales
increased 2. Unfavorable foreign exchange reduced net sales
by 6, while pricing added 1 to net sales, mix was neutral,
and minor brand divestitures had a negative impact of about
1. Global market share of the Fabric Care and Home Care
segment decreased 0.1 points. olume increased low single
digits in developed regions and was unchanged in developing
regions.
 Fabric Care volume increased low single digits due to low
single-digit growth in developed regions behind market
growth and product innovation. olume was unchanged
in developing regions. Global market share of the fabric
care category was flat.
 Home Care volume was unchanged as decreases due to
competitive activity, mainly in developed markets, were
offset by increases from product innovation and expanded
distribution. Global market share of the home care
category was down nearly half a point.
Net earnings decreased 5 to $2.6 billion due to the net sales
reduction. Gross margin was unchanged as negative product
mix impacts from investments to expand new innovations
globally were offset by manufacturing cost savings. SG&A as
a percent of net sales was unchanged as lower spending due to
marketing and overhead efficiencies kept pace with reduced
sales.
Fiscal year 2014 compared with fiscal year 2013
Fabric Care and Home Care net sales were unchanged at $23.5
billion in 2014 on a 4 increase in unit volume. Organic sales
were up 4. Unfavorable foreign exchange reduced net sales
by 3. Reduced pricing decreased net sales by 1. Global
market share of the Fabric Care and Home Care segment
increased 0.1 points. olume increased high single digits in
developing regions and low single digits in developed regions.
 Fabric Care volume increased mid-single digits driven by
a high single-digit volume increase in developing regions
behind market growth and innovation, and a low single-
digit increase in developed regions due to product
innovation. Global market share of the fabric care
category was flat.
 Home Care volume increased mid-single digits driven by
a high single-digit increase in developing markets from
distribution expansion and market growth, and from a low
single digit increase in developed regions due to product
innovation. Global market share of the home care category
was up less than half a point.
Net earnings decreased 2 to $2.8 billion due to a 30-basis
point decrease in net earnings margin. Net earnings margin
decreased due to gross margin contraction partially offset by
a decrease in SG&A as a percentage of sales. Gross margin
decreased due to unfavorable geographic and product mix and
the impact of foreign exchange, which was partially offset by
manufacturing cost savings. SG&Aas a percentage of net sales
decreased due to marketing and overhead efficiencies.
  D  R
 millions 2015
Change
s. 2014 2014
Change
s. 201
olume NA (1) NA 4
Net sales 20,24 (3) $20,950 2
Net earnings 2,9  $2,940 (4)
 of net sales 14.5 50 bps 14.0 (90) bps
Fiscal year 2015 comparedwithfiscalyear 2014
aby, Feminine and Family Care net sales were down 3 to
$20.2 billion in 2015 on a 1 decline in unit volume. Organic
sales were up 3. Price increases, primarily in aby Care,
increased net sales by 2. Favorable geographic mix from
higher developed market volume in both Feminine Care and
aby Care and from product mix in Feminine Care increased
net sales by 2. Unfavorable foreign exchange reduced net
sales by 6. Global market share of the aby, Feminine and
Family Care segment decreased 0.6 points. olume increased
low single digits in developed regions and decreased high
single digits in developing regions.
 olume in aby Care decreased low single digits due to
a mid-single-digit decrease in developing regions
following increased pricing, partially offset by a low
single-digit increase in developed regions from product
innovation. Global market share of the baby care category
decreased less than a point.
 olume in Feminine Care decreased low single digits as
high single-digit decline in developing regions due to
competition and increased pricing was partially offset by
a mid-single-digit increase in developed regions from
product innovation, including the entry into the female
adult incontinence category. Global market share of the
feminine care category was flat.
 olume in Family Care was unchanged as low single-digit
growth in developed regions was offset by a double-digit
decline in developing regions due to discontinuation of
lower priced product offerings. In the U.S., all-outlet share
of the family care category decreased less than a point.
Net earnings were unchanged at $2.9 billion as the reduction
in net sales was offset by a 50-basis point increase in net
earnings margin. Net earnings margin increased due to higher
gross margin, partially offset by an increase in SG&A as a
percent of net sales. The increase in gross margin was driven
by higher pricing and manufacturing cost savings, partially
offset by foreign exchange. SG&A as a percent of net sales
increased as spending reductions did not keep pace with the
currency-driven decline in sales.