Procter & Gamble Co., the world's largest consumer products company, is looking to get smaller.

Chief Executive A.G. Lafley said Friday the company will shed more than half its brands in an effort to simplify the company and speed sales growth.

P&G will focus on 70 to 80 consumer brands including Tide detergent and Pampers diapers that collectively generate around 90% of the company's sales and 95% of its profits. It will divest or find ways to exit some 90 to 100 smaller brands, which mostly have annual sales under $100 million.

"We are going to create a faster growing, more profitable company that's far simpler to operate," Mr. Lafley said on the company's earnings call Friday. "Less will be much more."

Of the brands P&G plans to focus on, 23 have sales of $1 billion to $10 billion, 14 have sales of between $500 million and $1 billion, and the rest have sales of $100 million to $500 million.

The new approach came as P&G reported that its net sales grew just 1% to $83 billion in the year that ended June 30, while net income rose 3% to $11.6 billion. Organic sales growth, a measure that excludes currency moves, acquisitions and divestitures, rose 3%, in line with the company's earlier forecast.

Net sales fell 1% in the final quarter of that year, as organic sales grew 2%.

Mr. Lafley said P&G delivered on its business and financial commitments over the past year. But, he added, "We could have and should have done better."

For the recently started fiscal year, the company expects core earnings per share to grow in the range of mid-single digits, while net sales growth is expected to be in the low-single-digit range.

Anna Prior contributed to this article.

Write to Serena Ng at serena.ng@wsj.com

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