The Procter & Gamble Company reported first quarter fiscal year 2020 net sales of $17.8 billion, an increase of 7% versus the prior year. Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales also increased 7%, said the maker of Tide laundry detergent and Olay skin care.

“We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results,” said David Taylor, chairman, president and CEO. “We will continue executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.”

Net sales in the first quarter of fiscal year 2020 were $17.8 billion, up seven percent versus the prior year. Unfavorable foreign exchange negatively impacted sales by two percentage points for the quarter. According to P&G, excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales also increased seven percent driven by a four percent increase in organic shipment volume, one percentage point of increased pricing and two percentage points of positive mix impact.

Positive mix was driven by the disproportionate growth of the personal health care and skin and personal care categories and strong growth in Japan, all of which have higher than average selling prices.  Sales growth in Japan was largely driven by an increase in retailer inventories ahead of a planned VAT increase in October 2019, contributing approximately 40 basis points to overall company growth in the quarter, which primarily benefitted the beauty, fabric and home care and baby businesses.

P&G said beauty segment organic sales increased ten percent versus year ago, with skin and personal care organic sales increasing mid-teens, driven by premium innovation, positive product mix, primarily from the disproportionate growth of the super-premium SK-II brand and China Olay, and increased pricing. P&G reported that hair care organic sales increased mid-single digits driven by innovation and devaluation-driven price increases.

Grooming segment organic sales increased one percent versus year ago. Shave care organic sales was unchanged as the benefit of devaluation-driven price increases were offset by related unit volume declines and competitive activity, said P&G. Appliances organic sales increased low single digits as increased pricing and positive mix impact from the disproportionate growth of premium products were partially offset by volume decreases due to category contraction and retailer inventory reduction.

Health care segment organic sales increased nine percent due to volume growth and positive mix driven by premium toothpaste and toothbrush innovation and increased pricing. Personal Health Care all-in sales increased over 50% versus the base period due to the addition of the Merck OTC business, according to P&G.

Fabric and home care segment organic sales increased eight percent for the quarter. P&G reported that fabric care organic sales increased high single digits driven by innovation and market growth. Home care organic sales increased high single digits driven by innovation and devaluation related price increases.

Baby, feminine and family care segment organic sales increased five percent versus year ago. 

The company raised its outlook for fiscal 2020 all-in sales growth from a range of 3-4% to a range of 3-5% growth versus the prior fiscal year. P&G said the estimate includes a modest negative impact from foreign exchange, largely offset by a modest positive impact from acquisitions and divestitures.

P&G also increased its guidance for organic sales growth from a range of 3-4% to a range of 3-5% growth.