P&G delivers FY23 Q1 solid growth fueled by beauty, grooming and household sectors despite “significant headwinds”

20 Oct 2022 --- In a difficult cost and operating environment, net sales for the first quarter of the Procter & Gamble Company’s fiscal year 2023 were US$20.6 billion, up 1% from the previous year’s period. The report details that organic sales in the beauty sector rose by 4% over the previous year.

The company’s report also revealed a 7% rise in organic sales, excluding exchange rates, acquisitions and divestitures impacts. Diluted net earnings per share were US$1.57, a 2% decline from earnings per share (EPS) in the previous year.

“We delivered solid results in our first quarter of fiscal 2023,” says Jon Moeller, chairman of the board, president and CEO of P&G.

“These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds. We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organization structure.”

“These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to navigate the near-term challenges and continue to deliver balanced growth and value creation.”

Net sales increased by 1% to $20.6 billion during this period. Unfavorable foreign exchange affected net sales by 6%.

Favorable product mix and higher pricing contributed 1% and 9%, respectively, to the growth in organic revenues, which was slightly offset by a 3% decline in shipment volumes.

Beauty and grooming sectors
The report continues to detail that organic sales in the beauty sector rose due to innovation-driven volume growth and higher prices, as well as skin and personal care organic sales climbed by the mid-single digits.

Within the Baby, Feminine and Family Care areas, organic sales reportedly rose by 6% from a year before.These factors partially offset the unfavorable mix from the decline of P&G’s cosmetics brand SK-II. Organic hair care sales rose by the mid-single digits due to higher pricing, partially offset by volume decreases brought on by a shrinking market.

Due to higher prices, the grooming segment’s organic sales rose by 5% from a year ago. The unfavorable mix brought on by the slowing appliance market somewhat offsets this growth.

Organic sales in the healthcare industry rose 8% over the previous year. Due to higher prices and a positive premium product mix, Oral Care organic sales climbed by low single digits, primarily offset by volume declines in a contracting market.

Household, feminine and family categories
Within the Baby, Feminine and Family Care areas, organic sales reportedly rose by 6% from a year before. Due to higher prices, Baby Care organic sales increased by the mid-single digits; volume declines, particularly portfolio reduction in Russia, partially offset this growth.

In feminine care, sales rose by double digits due to higher pricing and a favorable geographic mix, which were somewhat offset by volume decreases brought on by the contraction of the Russian portfolio.

The report adds that low single-digit growth in Family Care organic sales was driven by higher pricing, which was somewhat offset by reduced market volumes and soft market share.

Organic sales for the Fabric and Home Care segment climbed by 8% from the previous year. Due to higher prices, Fabric Care organic sales increased by the high single digits, somewhat offset by volume decreases brought on by a shrinking market and softening market share, mainly in Europe.

Home Care organic sales rose by single digits due to higher pricing, somewhat offset by volume losses compared to a high base period of rising cleaning product usage.

By Nicole Kerr

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