Procter & Gamble hit its overall fiscal 2014 goals, and while beauty sales remain challenged, profits in the sector soared.

Meanwhile, P&G Chief Executive Officer A.G. Lafley announced a sweeping brand reduction that will cut its portfolio to 70 to 80 properties from its current 160 or so. The massive pruning will take place over the next 24 months and include divesting brands and slashing sku’s. Staying put are its top performing, strongest brands representing 90% of sales.

A.G. explained it is a logical step as a previously announced realignment of manufacturing and distribution systems in the U.S. gets underway, and the company internalizes a culture of productivity.

“We are picking spots in industries that play to our strengths and assets, and we are going for it,” declared A.G. in response to an analyst query. Brands will be grouped into 12 segments. “The business will get a lot simpler,” said A.G., and be more “agile and adaptable.”

For fiscal 2014, P&G posted net sales of $83.1 billion, up 1% with organic sales growth of 3%. It delivered core earnings per share of $4.22, up 5%. Beauty net sales slid 2% to $19.5 billion, while income jumped 11% to $2.73 billion thanks to system efficiencies. Organic beauty sales were flat. Grooming net sales came in flat at $8 billion, but produced income of $1.95 billion, up 6% and organic sales growth of 3%.

While P&G met financial goals, on the revenue side “we could have done better,” commented A.G.

In the fourth quarter P&G’s net sales declined 1% to $20.16 billion, with organic sales up 2%. Core earnings per share rose 20% to $.95. Beauty sales fell 5% to $4.6 billion, with organic sales down 3% and net earnings jumping 23%. Grooming rose 5% to $2.07 billion, with organic sales up 7% and net earnings growth of 19%.

The Salon Professional business performed strong and the new Olay Regenerist Luminous collection also had good results. Although Olay overall “is still struggling,” said A.G. In the U.S., Pantene got off to a solid start, but competitors responded with aggressive promotions. Internationally, the hair care brand made inroads in Brazil and China.

P&G’s first central distribution center opened in Dayton, Ohio recently, with five more to be operational by early 2015. And its 35 U.S. manufacturing plants are being consolidated into fewer facilities that produce a wider variety of products. A similar restructuring for Europe is now being considered. P&G saved $1.6 billion in materials and manufacturing costs during the year.

In coming months, P&G will spend less on marketing but expects bigger returns as it shifts to more digital, social and mobile activities. Ecommerce now represents $2.5 billion of its $83 billion sales and is growing 30% to 40% a year. For fiscal 2015, P&G projects organic sales growth in the low to mid-single digits and net sales in the low single digits, with core earnings per share growth in the mid-single digits.