Cincinnati, Oct. 14 - Procter & Gamble will continue to focus on its core fundamentals to drive long-term growth through good and challenging times alike, Chairman of the Board and Chief Executive Officer, A.G. Lafley, told the company's shareholders at its annual meeting today.
P&G's portfolio of leading brands, its focus on creating consumer value, its cash and cost management discipline and its unswerving passion for innovation are the core fundamentals that have and will continue to fuel the company's growth, shareholders were told.
Mr. Lafley said: "The reason P&G has grown so consistently for so long is that we're a company that sticks to the fundamentals. We build brands that improve consumers' lives. We deliver superior value day in and day out. We manage cash and costs with unrelenting discipline. And we invest in innovation as the primary driver of profitable organic sales growth.
"While the economic environment remains volatile and uncertain, I am confident that P&G can and will continue to prosper over the long term. We are committed to ensuring P&G will continue to be a company you can count on."
P&G's net sales for the fiscal year ended June 30, 2008 increased nine percent to $83.5 billion, with organic sales up five percent - in the middle of the Company's four to six percent target range. Diluted earnings per share were $3.64, up 20 percent - or double the Company's ten percent target. P&G's free cash flow was $13.0 billion for the fiscal year, or 106 percent of net earnings - well above the Company's 90 percent goal.
P&G sales have nearly doubled for each of the past three decades - from $10 billion in 1980 to more than $80 billion today with earnings growth increasing from $640 million to $12 billion over the same period. Over the past five years, P&G has delivered 11 percent compound annual total return to shareholders, nine percent over the past ten years, and 16 percent over the past 20 years. The Company's dividends have also increased every year - more than nine percent a year, on average - over the past fifty-two years, and have been paid without interruption since the Company was incorporated 118 years ago.
P&G will issue its results for the first fiscal quarter ended September 30, 2008 on October 29, 2008.