P&G Pet Division Posts Gains for Q4 and Year

Procter & Gamble Co.'s snacks and pet care division reported net earnings of $77 million for the fourth quarter of fiscal year 2010 ended June 30, up 18 percent from last year's earnings. Net sales for the division increased 6 percent to $798 million in the quarter, compared to last year.

For the year, the division reported a net earnings increase of 39 percent to $326 million. Net sales for the division were $3.1 billion, up 1 percent from the previous year.

Unit volume for the division declined two percent for the year, driven by lower shipments in snacks. Volume in pet care was up low single digits, driven by product initiatives, increased marketing spending and incremental merchandising support, according to P&G. 

Price increases, taken primarily to offset high commodity costs, added 3 percent to the division's net sales growth for the year. Product mix reduced net sales by 1 percent, due mainly to the discontinuation of premium snack products and higher shipments of large-sized pet products, the company reported.

Overall, the Cincinnati-based company reported net earnings of $2.2 billion on net sales of $18.9 billion for the fourth quarter of 2010, compared to net earnings of $2.5 billion on net sales of $18 billion in the year-ago period.

For the year, P&G reported net earnings of $12.7 billion on net sales of $78.9 billion, compared to net earnings of $13.4 billion on net sales of $76.7 billion in fiscal year 2009.