P&G reports annual profit of $13bn, ascribes gains to Covid-19 cleaning products demands
Procter & Gamble (P&G), the global multi-brand conglomerate, has reported annual revenue of $71bn (profit of $13bn), ascribing the boost to increased demand for cleaning products during the coronavirus crisis, coupled with its ramped up marketing strategy. P&G says the rise in demand increased its profit by 234%, but warns challenges lie ahead.
The report revealed that P&G has hit its strongest annual sales since 2006, with its profit up 234% year-on-year at $3.89bn, while its organic sales grew 6% during Q4.
“We built strong momentum heading into Covid-19 crisis and arguably built this further during the challenging second half of the year,” David Taylor, P&G’s chairman, president and chief exec told investors.
He continued: “We maximised the availability of products to help people and their families with their cleaning health and hygiene needs. These products are more important than ever given the needs created by the current crisis, there’s increased awareness of health and hygiene and additional time are all spending at home.”
Recall that in April, P&G increased its ad spend, stating that it needed to put its brands in the faces of consumers in a time when their physical availability may be lacking.
“We step-changed consumer communication, leveraging TV advertising which delivered an immediate lift for the fabric and home care unit by showing consumers more ways to use our products. These superiority investments have welded strong results,” Taylor explained.
The company boss, however, warned: “The reality is that Covid-19 cases are increasing in many parts of the world without the resources or infrastructure to effectively manage it will likely be operating without a vaccine or advanced therapeutics throughout Fiscal 21.
“We will continue to face significant challenges and perhaps a higher degree of uncertainty than any of us have ever faced.”
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