US consumer goods giant Procter & Gamble has recorded a full-year increase in profits from the division housing its snacks products, despite a drop in volumes.
For the year ended 30 June, snacks and pet care profits increased 39% to reach US$326m, driven by higher net sales, increased operating margins and a lower tax rate.
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Net sales from the division increased 1% to reach $1.3bn. The Pringles maker said that organic sales were in line with the prior year but that unit volumes declined 2% due to price increases and the discontinuation of some premium snack products.
Group earnings for the full year dropped 12% to $2.18bn, although net sales rose 3% to $78.9bn.
“Our results in fiscal 2010 were ahead of our original expectations, and we are pleased with the trend of the business,” said chairman of the board, president and CEO Bob McDonald. “The investments we’ve made in innovation, marketing support and consumer value have delivered accelerating unit volume and profitable market share growth throughout the year, which are clear indications that our strategy is working.”
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