P&G’s sales up 4% to $20.1 billion in the third quarter of fiscal year

Procter & Gamble (P&G) reported that net sales in the third quarter of fiscal year 2023 were $20.1 billion, a 4% increase versus the prior year. Unfavorable foreign exchange had a 4% impact on net sales. Operating cash flow was $3.9 billion, and net earnings were $3.4 billion for the quarter.

Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased 7%. The organic sales increase was driven by a 10% increase from higher pricing and a 1% increase from favorable product mix, partially offset by a 3% decrease in shipment volumes.

Baby, feminine and family care segment organic sales increased 6% versus year ago. Baby care organic sales increased mid-single digits due to increased pricing, partially offset by volume declines mainly in Europe. Feminine care organic sales increased low teens driven by increased pricing and favorable geographic and product mix, partially offset by volume declines in enterprise markets. Family care organic sales increased low single digits due to increased pricing, partially offset by larger pack size mix and modestly lower shipment volumes. Organic sales grew in all regions.

P&G raised its guidance for fiscal 2023 all-in sales to grow approximately 1% versus the prior fiscal year and also raised its outlook for organic sales growth to approximately 6% versus the prior fiscal year. Foreign exchange is expected to be a five percentage point headwind to all-in sales growth for the fiscal year. Adicionally, P&G maintained its outlook for fiscal 2023 diluted net earnings per share growth in the range of in-line to up 4% versus fiscal 2022.

The company said its current fiscal 2023 outlook includes headwinds of approximately $1.3 billion after-tax due to unfavorable foreign exchange rates and $2.2 billion due to higher commodity and material costs.

“We delivered strong results in the third quarter of fiscal year 2023 in what continues to be a very difficult cost and operating environment”, said Jon Moeller, Chairman of the Board, President and Chief Executive Officer.

“Our team’s strong execution of our strategies and our progress through three quarters enable us to raise our fiscal year outlook for sales growth and cash return to shareowners and maintain our guidance range for EPS growth despite continued cost and foreign exchange headwinds. We remain committed to our integrated strategies of a focused product portfolio of daily use categories where performance drives brand choice, superiority, productivity, constructive disruption and an agile and accountable organization structure. These strategies have enabled us to build and sustain strong momentum, and we’re confident they remain the right strategies to deliver balanced growth and value creation going forward”, completed Moeller.