Vicks Nears $1 Bil. In Sales Under “Focused” Growth Strategy – P&G

The Vicks brand of over-the-counter cough, cold and flu products is "on its way" to becoming a $1 billion franchise, according to Procter & Gamble President and CEO A.G. Lafley.

"We are really seeing it coming in the results, not just in the U.S. and Western Europe, but even in developing markets," Lafley stated during the firm's third quarter earnings call May 1.

Since acquiring Vicks in 1985, P&G has let the brand "just wander along," but the company's "very focused effort" on growing the line over the past two years is paying off, Lafley said.

Vicks delivered double-digit volume growth during the January-March period "due in part to the timing of the cold and flu seasons versus year ago," the firm reported.

The performance of Vicks contributed to a 10 percent increase in health care net sales to $2.19 billion, according to P&G. Net earnings for the division advanced 31 percent to $347 million.

Additionally, health care sales benefited from Prilosec OTC 'svolume growth of more than 20 percent "driven by continued consumption growth and versus a soft base period," the firm noted.

All-outlet value share of Prilosec OTC was up more than two points to 40 percent.

P&G has said Prilosec and other health care products represent the firm's strongest growth area (¹ (Also see "Prilosec OTC Part Of “Engine Of Growth” P&G Expects From Health Care Sales" - Pink Sheet, 5 Feb, 2007.), p. 3).

Pepto-Bismol and Metamucil also delivered strong results, the firm said.

Global oral care also contributed to the health care division. Oral care volume grew mid-single digits fueled by "double-digit developing region growth and a three point increase in U.S. toothpaste market share."

P&G net revenues were up 8 percent to $18.69 billion, with organic sales up 6 percent. Net earnings advanced 14 percent to $2.51 billion behind strong operating profit, the firm said.

- Eileen Francis ([email protected])