10.25.21
Update: Procter & Gamble ranks at #4 on our latest report Top 20 Global Beauty Companies 2022.
Procter & Gamble is #3 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$71 billion
Beauty Sales
$13 billion
Key Personnel
Jon R. Moeller, president and CEO; David Taylor, executive chairman; Gary Coombe, chief executive officer, grooming; R. Alexandra Keith, chief executive officer, Beauty; Virginie Helias, chief sustainability officer
Major Products
Hair Care (Conditioner, Shampoo, Styling Aids, Treatments) including Head & Shoulders, Herbal Essences, Pantene, Rejoice; and Skin & Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care) including Olay, Old Spice, Safeguard, Secret, SK-II
New Products
Olay Cleansing & Renewing Body Care Duo with Retinol, Olay Premium Exfoliating Body Wash Collection, Olay collagen Peptide 24 Serum, Head & Shoulders Clinical, Royal Oils and Supreme, Pantene Radiant Color Shine Shampoo
Comments
With its wide-ranging CPG product line, P&G was one of the exception-to-the rules companies in 2021, balancing Covid-19 necessities like toilet paper and cleaning products, with deodorant, skin care and shampoo basics—and ramping up annual sales. For the year ended 7-30-21, the U.S.-based behemoth reported fiscal year 2021 corporate net sales of $76.1 billion, an increase of 7% over the prior year. Beauty Sales accounted for $13.4 billion, about 19% of the total, an increase of 4% over the previous year. Fourth quarter net sales reached $18.9 billion, up 7% over the prior year. Net sales were tipped slightly toward International (39.7%); U.S., 31.3%).
Read Next: Shiseido is #5.
P&G’s largest customer, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 15% in 2020, as in 2019 and 2018. No other customer represents more than 10% of the company’s consolidated net sales.
David Taylor, chairman, president and CEO at the time the annual results were released, said, “We delivered another year of strong results with balanced top and bottom-line growth and strong cash generation, exceeding each of our in-going targets. We built strong momentum prior to the pandemic and have strengthened our position further.” (In his final fiscal year at the helm, Taylor reportedly upped his annual salary by a million dollars to $23.9 million).
P&G Beauty has been restructured and now encompasses two categories: Skin & Personal Care; and Hair Care. Skin and Personal Care organic sales increased double digits, primarily driven by innovation, increased pricing and positive mix impact from the disproportionate growth of SK-II brand due to the pandemic-related travel disruptions in the base period.
Hair Care organic sales increased low single digits primarily due to increased pricing, partially offset by negative mix from growth in emerging markets. Higher current year volumes in certain markets due to pandemic related shutdowns in the base period were offset by lower volumes in North America due to the impact of pandemic-related inventory restocking in the base period.
The company touts top positions in both Skin & Personal Care and Hair Care. The Olay brand, one of the top facial skin care brands in the world has approximately 6% global market share, while Pantene and Head & Shoulders brands boost their retail hair care market to over 20% global market share In fiscal 2020, Beauty net sales increased 4% to $13.4 billion on a 3% increase in unit volume. Unfavorable foreign exchange impacts reduced net sales by 2%. Higher pricing increased net sales by 2%. Favorable product mix added 1% to net sales due to the disproportionate growth of the Skin and Personal Care category, including the Olay skin care brand, which has higher than segment average selling prices. Global market share of the Beauty segment increased 0.2 points. Volume increased mid-single digits in North America, Europe and Asia Pacific and increased low single digits in Greater China and Latin America. Volume decreased high single digits in IMEA.
Volume in Hair Care increased low single digits—mid-single digits in Europe and Asia Pacific and low single digits in North America and Latin America due to product innovation and market growth. Volume decreased double digits in IMEA and decreased low single digits in Greater China due to the economic slowdown caused by the pandemic in the second half of the fiscal year and market declines in certain countries. Global market share of the hair care category was unchanged.
Volume in Skin and Personal Care increased mid-single digits. Volume increased double digits in Greater China, imid-single digits in North America, and ilow single digits in Europe and Asia Pacific due to premium innovation, increased marketing spending and market growth, partially offset by a volume decrease in the SK-II brand and a mid-single digits decline in IMEA due to pandemic-related travel restrictions. Global market share of the skin and personal care category increased nearly half a point.
In October, P&G Beauty announced its first-ever refillable aluminum bottle system to launch at-scale, with its Head & Shoulders, Pantene, Herbal Essences and Aussie brands in Europe. The refill system uses a new reusable 100% aluminum bottle and recyclable refill pouch, made using 60% less plastic (per ml versus standard brand bottle). The new sustainable packaging will enable millions of households across Europe to reduce, reuse and recycle. It is set to pave the way in changing the way consumers buy, use and dispose of their shampoo bottles.
P&G Beauty says it is on track to reduce virgin plastic usage by 50% in shampoo and conditioner bottles by the end of 2021, where through collective efforts to reduce, reuse and recycle it will result in 300 million fewer virgin plastic bottles being produced yearly.
2021 Highlights
In June, P&G opened a new Global Product Supply Innovation Center (PSIC) in Kronberg, Germany—and says it represents the ‘sustainable supply chain of the future.’ PSIC leverages P&G innovation and serves as the hub for the collaboration with a network of local suppliers, tech companies, R&D institutions and top universities—developing solutions that are scalable, globally. It also plans to “decarbonize” its supply chain.
By 2030, the company targets to cut its greenhouse gas emissions by 50% across operations. P&G has committed to purchase 100% renewable electricity globally and to achieve overall carbon neutrality for the decade from 2020-2030.
At the end of July, P&G announced that Jon R. Moeller, vice chairman and chief operating officer, would succeed David Taylor as Procter & Gamble’s president and chief executive officer, effective November 1, 2021. Moeller joined P&G in 1988. Former chairman, president and CEO David Taylor becomes executive chairman.
Debuting in what the brand calls ‘cosmic’ packaging, P&G launched Quiet and Roar, a ‘clean’ gender-neutral line of five body wash and body lotions with essential oil scents, aimed at Gen Z—and designed to restore mind and body. The brand uses 100% post-consumer recycled materials to package the body lotions and body washes.
Continuing to appeal to this demographic, the global powerhouse recently launched Nou, a multicultural hair care line aimed at Gen Z.
Looking Ahead
David Taylor, chairman, president and CEO (at the time of the year’s 2020 results), said, “As we look forward to fiscal 2022, we expect to continue to grow top-line and bottom-line and to deliver another year of strong cash return to shareholders despite a challenging cost and operating environment.”
P&G expects fiscal year 2022 all-in sales growth in the range of 2-4% versus the prior fiscal year. The company expects organic sales growth also in the range of 2-4%.
Taylor added: “Looking ahead, we believe that the volatility and challenges we face may continue for some time. While parts of the world have returned to some sense of normality, there are many parts still well in the midst of the pandemic. There also may be a resurgence of the virus in many places now thought of as generally safe. And, the economic impact has yet to be fully realized. Over the long term, we believe we are well-positioned to serve consumers and create value in an attractive industry. While we are not immune to recession, our strategy puts us on better footing than prior downturns to weather economic headwinds.”
Procter & Gamble is #3 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$71 billion
Beauty Sales
$13 billion
Key Personnel
Jon R. Moeller, president and CEO; David Taylor, executive chairman; Gary Coombe, chief executive officer, grooming; R. Alexandra Keith, chief executive officer, Beauty; Virginie Helias, chief sustainability officer
Major Products
Hair Care (Conditioner, Shampoo, Styling Aids, Treatments) including Head & Shoulders, Herbal Essences, Pantene, Rejoice; and Skin & Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care) including Olay, Old Spice, Safeguard, Secret, SK-II
New Products
Olay Cleansing & Renewing Body Care Duo with Retinol, Olay Premium Exfoliating Body Wash Collection, Olay collagen Peptide 24 Serum, Head & Shoulders Clinical, Royal Oils and Supreme, Pantene Radiant Color Shine Shampoo
Comments
With its wide-ranging CPG product line, P&G was one of the exception-to-the rules companies in 2021, balancing Covid-19 necessities like toilet paper and cleaning products, with deodorant, skin care and shampoo basics—and ramping up annual sales. For the year ended 7-30-21, the U.S.-based behemoth reported fiscal year 2021 corporate net sales of $76.1 billion, an increase of 7% over the prior year. Beauty Sales accounted for $13.4 billion, about 19% of the total, an increase of 4% over the previous year. Fourth quarter net sales reached $18.9 billion, up 7% over the prior year. Net sales were tipped slightly toward International (39.7%); U.S., 31.3%).
Read Next: Shiseido is #5.
P&G’s largest customer, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 15% in 2020, as in 2019 and 2018. No other customer represents more than 10% of the company’s consolidated net sales.
David Taylor, chairman, president and CEO at the time the annual results were released, said, “We delivered another year of strong results with balanced top and bottom-line growth and strong cash generation, exceeding each of our in-going targets. We built strong momentum prior to the pandemic and have strengthened our position further.” (In his final fiscal year at the helm, Taylor reportedly upped his annual salary by a million dollars to $23.9 million).
P&G Beauty has been restructured and now encompasses two categories: Skin & Personal Care; and Hair Care. Skin and Personal Care organic sales increased double digits, primarily driven by innovation, increased pricing and positive mix impact from the disproportionate growth of SK-II brand due to the pandemic-related travel disruptions in the base period.
Hair Care organic sales increased low single digits primarily due to increased pricing, partially offset by negative mix from growth in emerging markets. Higher current year volumes in certain markets due to pandemic related shutdowns in the base period were offset by lower volumes in North America due to the impact of pandemic-related inventory restocking in the base period.
The company touts top positions in both Skin & Personal Care and Hair Care. The Olay brand, one of the top facial skin care brands in the world has approximately 6% global market share, while Pantene and Head & Shoulders brands boost their retail hair care market to over 20% global market share In fiscal 2020, Beauty net sales increased 4% to $13.4 billion on a 3% increase in unit volume. Unfavorable foreign exchange impacts reduced net sales by 2%. Higher pricing increased net sales by 2%. Favorable product mix added 1% to net sales due to the disproportionate growth of the Skin and Personal Care category, including the Olay skin care brand, which has higher than segment average selling prices. Global market share of the Beauty segment increased 0.2 points. Volume increased mid-single digits in North America, Europe and Asia Pacific and increased low single digits in Greater China and Latin America. Volume decreased high single digits in IMEA.
Volume in Hair Care increased low single digits—mid-single digits in Europe and Asia Pacific and low single digits in North America and Latin America due to product innovation and market growth. Volume decreased double digits in IMEA and decreased low single digits in Greater China due to the economic slowdown caused by the pandemic in the second half of the fiscal year and market declines in certain countries. Global market share of the hair care category was unchanged.
Volume in Skin and Personal Care increased mid-single digits. Volume increased double digits in Greater China, imid-single digits in North America, and ilow single digits in Europe and Asia Pacific due to premium innovation, increased marketing spending and market growth, partially offset by a volume decrease in the SK-II brand and a mid-single digits decline in IMEA due to pandemic-related travel restrictions. Global market share of the skin and personal care category increased nearly half a point.
In October, P&G Beauty announced its first-ever refillable aluminum bottle system to launch at-scale, with its Head & Shoulders, Pantene, Herbal Essences and Aussie brands in Europe. The refill system uses a new reusable 100% aluminum bottle and recyclable refill pouch, made using 60% less plastic (per ml versus standard brand bottle). The new sustainable packaging will enable millions of households across Europe to reduce, reuse and recycle. It is set to pave the way in changing the way consumers buy, use and dispose of their shampoo bottles.
P&G Beauty says it is on track to reduce virgin plastic usage by 50% in shampoo and conditioner bottles by the end of 2021, where through collective efforts to reduce, reuse and recycle it will result in 300 million fewer virgin plastic bottles being produced yearly.
2021 Highlights
In June, P&G opened a new Global Product Supply Innovation Center (PSIC) in Kronberg, Germany—and says it represents the ‘sustainable supply chain of the future.’ PSIC leverages P&G innovation and serves as the hub for the collaboration with a network of local suppliers, tech companies, R&D institutions and top universities—developing solutions that are scalable, globally. It also plans to “decarbonize” its supply chain.
By 2030, the company targets to cut its greenhouse gas emissions by 50% across operations. P&G has committed to purchase 100% renewable electricity globally and to achieve overall carbon neutrality for the decade from 2020-2030.
At the end of July, P&G announced that Jon R. Moeller, vice chairman and chief operating officer, would succeed David Taylor as Procter & Gamble’s president and chief executive officer, effective November 1, 2021. Moeller joined P&G in 1988. Former chairman, president and CEO David Taylor becomes executive chairman.
Debuting in what the brand calls ‘cosmic’ packaging, P&G launched Quiet and Roar, a ‘clean’ gender-neutral line of five body wash and body lotions with essential oil scents, aimed at Gen Z—and designed to restore mind and body. The brand uses 100% post-consumer recycled materials to package the body lotions and body washes.
Continuing to appeal to this demographic, the global powerhouse recently launched Nou, a multicultural hair care line aimed at Gen Z.
Looking Ahead
David Taylor, chairman, president and CEO (at the time of the year’s 2020 results), said, “As we look forward to fiscal 2022, we expect to continue to grow top-line and bottom-line and to deliver another year of strong cash return to shareholders despite a challenging cost and operating environment.”
P&G expects fiscal year 2022 all-in sales growth in the range of 2-4% versus the prior fiscal year. The company expects organic sales growth also in the range of 2-4%.
Taylor added: “Looking ahead, we believe that the volatility and challenges we face may continue for some time. While parts of the world have returned to some sense of normality, there are many parts still well in the midst of the pandemic. There also may be a resurgence of the virus in many places now thought of as generally safe. And, the economic impact has yet to be fully realized. Over the long term, we believe we are well-positioned to serve consumers and create value in an attractive industry. While we are not immune to recession, our strategy puts us on better footing than prior downturns to weather economic headwinds.”