Procter & Gamble reported better-than-expected quarterly sales growth on Friday but two of its high-end businesses were still weak after recent safety issues.
 
In Asia, P&G is working on bringing women back to its luxury – and high-margin — SK-II beauty line. Sales were suspended in China and South Korea last fall after authorities raised safety concerns about chromium and neodymium in some products, though have since resumed.
 
“Every case we lose on SK-II has a margin impact,” Chairman and Chief Executive A.G. Lafley said during a conference call.
 
The fallout from the SK-II issues led to roughly a 1 percent drag on sales growth in the beauty unit in the fiscal fourth quarter, which ran from April to June. Total beauty sales rose 8 percent to $5.9 billion.
 
Meanwhile, the snacks, coffee and pet care segment posted the lowest growth of any part of the company, with sales up just 2 percent to $1.1 billion as pet food sales fell.  Some of the company’s wet Iams and Eukanuba products were among those recalled after melamine was found in the food, which was made by an outside manufacturer.

P&G said its pet food business is still in recovery mode. It is beefing up marketing spending to get consumers to try new products such as Iams Healthy Naturals dry dog food.