P&G’s sales increase in Q1

Procter & Gamble says rising prices has helped increase sales in the first quarter of the year.

Net sales increased 9% to $21.9bn (£13.6bn), while organic sales, which exclude the impact of acquisitions, asset sales and currencies, increased 4%, driven by “broad based price increases”.

P&G chairman Bob MacDonald says the company has made a “good start” to the year and expects sales to increase between three and 6% in the coming year.

The company is two thirds of the way through its plan to increase product prices to offset higher commodity costs.

However, increasing commodity costs and marketing has continued to impact P&G’s margins, but it says its strategy to increase prices will help position the company for future growth.

Operating margin at the FMCG firm, which owns brand including Gillette, Pampers and Olay, fell 2.6% to 19.8% of net sales in the three months to the end of September, as costs continue to increase faster than price rises, and high operating costs.

P&G increased marketing costs around 0.2% to support innovation and expansion programmes.

MacDonald adds: “We maintained strong top-line growth momentum in a difficult operating environment. We are well positioned – due to continued top-line strength, recently implemented price increases and our productivity improvement and cost savings efforts – to improve earnings growth as we progress through the fiscal year.”

Reckitt Benckiser warned of slowing growth earlier this week when it reported a 16% rise in revenue to £2.45bn for the three months end of September, its third quarter.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here