P&G reports net sales of $20.6 billion in 1st quarter fiscal year 2023
Chief Executive Officer Jon Moeller said the company was able to deliver robust numbers in a very challenging operating environment
The multinational consumer goods company Procter & Gamble (P&G) reported first quarter fiscal year 2023 net sales of $20.6 billion, an increase of one percent versus the prior year. “We were able to deliver robust numbers in the first fiscal quarter in a very challenging operating and cost scenario”, says Jon Moeller, CEO of P&G.
According to the company, unfavorable foreign exchange had a six percent impact on net sales.
With an increase in the costs of increased commodity and input material, freight and packaging, added to a negative product mix and other impacts, the company’s gross margin decreased 160 basis points in the quarter compared to last year. The pass-through of inflation and the reduction of expenses contributed to minimize part of these effects.
INCREASE IN SALES
Organic sales increased seven percent driven by a nine percent increase from higher pricing and a one percent increase from positive product mix, partially offset by a three percent decrease in shipment volumes.
Baby, Feminine and Family Care segment organic sales increased six percent versus year ago. Baby Care organic sales increased mid-single digits due to increased pricing, partially offset by volume declines including portfolio reduction in Russia. Feminine Care organic sales increased double digits driven by increased pricing and positive geographic mix, partially offset by volume declines due to portfolio reduction in Russia. Organic sales grew in all regions. Family Care organic sales increased low single digits due to increased pricing, partially offset by lower market volumes and soft market share.
P&G reduced its sales estimate for the year to a retraction between 1% to 3% compared to the previous period. Organic sales are expected to grow between 3% and 5%, while earnings per share are expected to remain stable at up to 4% growth.
The results surpassed the estimates of analysts consulted by the agency FactSet, who had expected revenues of US$ 20.2 billion and earnings per share of US$ 1.54, against US$ 1.57 presented by the company.
