On July 30, P&G released its financial results for the fourth quarter and full year of fiscal year 2021, which ended on June 30.
The financial report shows that in fiscal year 2021, P&G clean sales of $76.118 billion (about RMB 491.844 billion), up 7% year-on-year; net profit of $14.306 billion (about RMB 92.44 billion), up 10% year-on-year. Net sales for the period and its increase were both the highest in the last 10 fiscal years.
In the fourth quarter of fiscal 2021 (April-June 2021), Bao Clean sales increased 7% year-on-year to $18.946 billion (approximately RMB 122.421 billion); net profit reached $2.906 billion (approximately RMB 18.777 billion), up 4% year-on-year.
By business segment, the beauty division’s fiscal 2021 sales increased 8% year-over-year to $14.417 billion (approximately RMB 93.207 billion), and in the fourth quarter, the division’s sales increased 11% year-over-year to $3.51 billion (approximately RMB 22.691 billion), with double-digit sales growth in skin care and personal care products.
Among them, SK-II product sales grew by more than 30% thanks to innovative strategies and the pull of duty-free business, including Hainan. The beauty brands, represented by SK-II and Olay, have also been P&G’s dominant brands in the Chinese market. In addition to the sales contribution from Hainan duty-free stores, they have also performed well online, with Olay and SK-II ranking 4th and 8th, respectively, in the Tmall beauty brand ranking during this year’s 618.
Outside of the beauty division, P&G’s other divisions also posted good growth in fiscal 2021. Sales in the Shave Care segment grew 6% year-over-year to $6.44 billion (RMB 41.635 billion); sales in the Health Care segment grew 10% year-over-year to $9.956 billion (RMB 64.367 billion); sales in the Fabric & Home Care segment grew 10% year-over-year to $26.014 billion (RMB 168.183 billion); and sales in the Baby Sales in the Baby and Home Care segment were US$18.85 billion (RMB121.867 billion), up 3% year-over-year.
P&G CEO David Taylor was pleased with the performance, saying, “We had another year of strong growth, which exceeded every one of our target expectations. We built strong momentum ahead of the pandemic and further strengthened our position.”
Fiscal year 2021 is also David Taylor’s last fiscal year in office. The day before the earnings release (July 29), P&G announced to the public that Jon Moeller, vice chairman and chief operating officer, will succeed David Taylor as P&G’s president and chief executive officer, effective November 1, 2021. At the same time, Moeller was appointed to the company’s board of directors, and Taylor will remain as chairman of P&G’s board of directors.
David Taylor, who has been in office since 2015, is tasked with the responsibility of leading P&G out of the performance gloom – a state of declining net sales year after year between fiscal years 2015 and 2017. To this end, Taylor launched a series of reform measures, including large-scale layoffs, internal organizational restructuring, and further increase the size of the Chinese market, he called these layouts P&G “the most important organizational changes in the past 20 years.