P&G tallied up net sales of €15bn ($18.1bn) for Q3 of fiscal 2021, up 5% on the previous year. Total net earnings were up 12% for the quarter at €2.7bn ($3.2bn).
Sales growth was led by a 9% net sales surge in beauty; 8% in fabric and home care; and 4% in both grooming and health care. Baby, feminine and family care remained flat for the quarter. Globally, European focused markets were down.
David Taylor, chairman, president and CEO of P&G, said the results were “solid” across the board in what continued to be a “challenging operating environment”.
“We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organisation and culture. These strategies enabled us to build strong business momentum before the COVID crisis and accelerate our progress during the crisis, and they remain the right strategies to deliver balanced growth and value creation over the long term,” Taylor said.
Beauty buoyed by premium innovation – SK-II especially strong
Within the beauty division, growth in the quarter had been driven by the super-premium SK-II brand – up more than 30% globally in the quarter – as well as other premium innovations in North America skin care and increased pricing. Hair care also reported an organic sales rise, largely led by innovations in China.
Speaking to investors on the Q3 2021 earnings call, Jon Moeller, vice chairman and COO of P&G, said: “We’ve focused our portfolio on daily use products in categories where performance plays a significant role in brand choice. In these performance-driven categories, we’ve raised the bar on all aspects of superiority, product package, brand communication, retail execution and value.”
Echoing sentiments from this year’s CAGNY 2021 conference, Moeller said P&G continued to invest and back superiority: “Superior offerings delivered with superior execution drive market growth.”
And these investments were happening across all channels, including e-commerce, he said, with efforts being made in robust and protective packaging for home deliveries.
Post-COVID future? A ‘mindset of constructive disruption’
Discussing the future, Moeller said success required agility and that came with “the mindset of constructive disruption, a willingness to change, adapt and create new trends and technologies that will shape our industry for the future”.
“…Our business exhibited strong momentum (…) well before the COVID crisis. We’ve strengthened our position further during the crisis and we believe P&G is well-positioned to serve the heightened needs and new behaviours of consumers and our retail and distributor partners post-crisis,” he said.
