The chairman, president and CEO of consumer goods group Procter & Gamble A. G. Lafley has told the company’s shareholders at its AGM that the company is focused on delivering a full decade of top- and bottom-line growth.
Lafley told shareholders that the company had delivered on its commitments in fiscal 2006, increasing net sales by 20% to more than US$68bn, returning organic sales growth of 7%, and increasing earnings per share by 4% to $2.64.
“We are now focused on delivering a full decade of industry-leading top and bottom line growth,” Lafley said. “We have the strategies, strengths and structure to continue to transform our company in the face of unrelenting change and competition.”
Lafley said the company had met or exceeded its long-term sales growth goals for five consecutive years, with net sales increasing by an average of 12% per year since 2001.
The key strategies, Lafley told investors, are to continue to grow P&G’s core businesses including leading brands in major developed and developing markets, and by winning retail customers around the world; develop faster-growing, higher-margin, more structurally attractive businesses in areas where it has significant potential to achieve global leadership – businesses like beauty, health, personal care and home care; and accelerate growth in developing markets and with low-income consumers everywhere.
Lafley said that the company’s core strengths were in shopper and consumer understanding, innovation, branding, go-to-market capability and global scale, which enabled it to win with consumers and retail customers.
He added that P&G’s structure makes it the only consumer products company with global business unit profit centres, global Market Development Organisations and global shared services, all supported by innovative corporate functions.