Procter & Gamble’s Q3 Sales Increase 4%

The Procter & Gamble Company (P&G) said Q3 net sales increased 4% to $20.1 billion. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased 7%.

“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, president and chief executive officer.

Business Segments

Beauty segment organic sales increased seven 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 lower sales of SK-II in the travel retail channel. Hair Care organic sales increased double digits driven by increased pricing.

Grooming segment organic sales increased seven percent versus year ago as higher pricing was partially offset by negative volume and mix impacts from market contraction of appliances. All regions grew organic sales.

Health Care segment organic sales increased 9% versus year ago. Oral Care organic sales increased high single digits due to increased pricing. Personal Health Care organic sales increased double digits due to increased pricing, favorable mix and volume growth driven by innovation and a strong respiratory season.

Fabric and Home Care segment organic sales increased 9% versus year ago, while Baby, Feminine and Family Care segment organic sales increased 6% versus year ago.

Fiscal Year 2023 Guidance

“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,” said Moeller.

P&G raised its guidance for fiscal 2023 all-in sales to grow approximately 1% versus the prior fiscal year, from a prior guidance range of -1% to flat. The company also raised its outlook for organic sales growth to approximately 6% versus the prior fiscal year from a prior growth range of 4-5%.

“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,” Moeller added. “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.”