Procter & Gamble has posted a rise in fourth-quarter
profits of a third in its latest financial results, as
the chief executive of the consumer products giant warns
of continuing rises in commodities prices.
Final-quarter sales rose by 10% from the equivalent
period last year to $21.3bn (?11.9bn) including shifts
in exchange rates, although underlying sales were up by
a more modest 5% to match company predictions. Net
earnings improved by 33% to $3bn (?1.53bn).
The performance pushed annual revenues up by 9% to a new
mark of $83.5bn (?42.7bn), with sales volumes up by 4%.
The company also pointed to savings of $1.2bn (?614m)
resulting from its full integration with the Gillette
business it acquired in 2005.
P&G predicted growth of between 7%-10% for the following
?We are looking at the largest increase in commodity and
energy prices that any of us have seen? including the
1970s,? chief executive AG Lafley is quoted as saying in
the Financial Times.
The company is expected to pass on the bulk of the cost
rises to consumers in emerging markets, where sales
volumes were up by an above-trend 10%.