US-based consumer goods company P&G’s net sales grew 5% to $17.2bn in the third quarter, compared to the same period the year prior. Organic sales increased 6%.
By category, beauty net sales fell 1% to $3bn, but increased 1% on an organic basis. Grooming net sales declined 3% to $1.38bn, and remained flat on an organic basis.
Skin and Personal Care organic sales grew low single digits thanks to new products, increased pricing and increased marketing spending. The growth was partially offset by negative product mix, due to the double-digit decline of premium brand SK-II caused by temporary disruption of retail markets across Asia and a sharp reduction in travel-retail sales due to COVID-19.
Hair Care organic sales increased in the low single digits, driven by price increases, but was partially offset by double-digit volume decreases in China due to retail disruption.
P&G attributes overall growth to a 6% increase in organic shipment volume due to strong consumer demand in North America and some European markets due to the COVID-19 pandemic. Growth was partially offset by volume decreases in certain Asian markets due to the COVID-19 pandemic.
The company adjusted its outlook for fiscal 2020 all-in sales growth from a range of 4% to 5% to a range of 3% to 4% growth compared to the prior year.
P&G maintained its guidance for organic sales growth in the range of 4% to 5%.