P&G’s Net Sales Rise 6% in Q1

The Procter & Gamble Company reported first quarter fiscal year 2024 net sales of $21.9 billion, an increase of six percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 7%.

Diluted net earnings per share were $1.83, an increase of 17% versus prior year.

“We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales and core EPS growth,” said Jon Moeller, chairman of the board, president and CEO. “We remain committed to our integrated strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. The P&G team’s execution of this strategy has enabled us to build and sustain strong momentum. We have confidence this remains the right strategy to deliver balanced growth and value creation.”

P&G said unfavorable foreign exchange had a one percent impact on net sales. The organic sales increase (7%) was driven by a seven percent increase from higher pricing and one percent increase due to favorable product mix, partially offset by a one percent decrease in shipment volumes.

Beauty

Beauty segment organic sales increased five percent versus year ago. Skin and personal care organic sales grew low single digits as higher pricing and innovation-based volume growth were partially offset by unfavorable mix due to lower sales of SK-II. Hair care organic sales increased high single digits driven primarily by increased pricing.

Grooming

Grooming segment organic sales increased nine percent versus year ago as higher pricing and favorable product mix were partially offset by pricing-related volume declines. All regions grew organic sales, according to P&G.

Health Care & Oral Care

P&G’s health care segment organic sales increased ten percent versus year ago. Oral care organic sales increased high single digits due to increased pricing and favorable product mix. Personal health care organic sales increased double digits due to increased pricing and volume growth due to innovation and strong demand for respiratory products.

Fabric & Home Care

Fabric and home care segment organic sales increased nine percent versus year ago. Fabric care organic sales increased high single digits due to increased pricing and favorable product mix, partially offset by volume declines primarily in Asia. Home Care organic sales increased low teens due to increased pricing and favorable premium products mix.

The baby, feminine and family care segment organic sales increased seven percent versus year ago.

Guidance for Fiscal 2024

P&G adjusted its guidance range for fiscal 2024 all-in sales growth to be in the range of two to four percent versus the prior year. Foreign exchange is now expected to be a headwind of approximately one to two percentage points to all-in sales growth. The company maintained its outlook for organic sales growth in the range of four to five percent.

Additional Reading

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