P&G Posted $20.1 billion Net Sales in Q3, Driving by Price Hike

P&G delivered $20.1 billion net sales in Q3 of 2023 fiscal year, saw growth of 4%. with organic sales rising by 7%. The organic sales increase was driven by ten percent increase from higher pricing and a one percent increase from favorable product mix.

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Procter & Gamble (P&G), the consumer goods giant, delivered $20.1 billion net sales in Q3 of 2023 fiscal year, saw growth of 4%. with organic sales rising by 7%.

Procter & Gamble (P&G), the consumer goods giant, announced a net sales figure of $20.1 billion, which represents a 4% rise compared to the same period in the previous year. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, saw growth of 7%. This exceeded the $19.3 billion estimate predicted by analysts surveyed by Factset. Diluted net earnings per share were $1.37, a 3% increase from the prior year. Net earnings for the quarter were $3.4 billion.

P&G pointed out that the rise in organic sales was driven by a ten percent increase from higher pricing, and a one percent increase linked to a positive shift in product mix. However, this was partly offset by a 3% decrease in the volume of shipments.

“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.”

In terms of business segments. beauty segment delivered $3.494 billion in organic sales, with an increase of 7% compared to last year. Skin and Personal Care organic sales experienced slight growth due to higher pricing and volume growth through innovation, but sales of SK-II in the travel retail channel were lower. Hair Care organic sales increased by double digits because of increased pricing.

Grooming segment organic sales saw 7% growth of $1.495 billion, mainly due to higher pricing, although negative volume and mix impacts were caused by the market contraction of appliances. Organic sales grew in all regions.

Health Care segment, organic sales increased by 9% to $2.828 billion. Oral Care organic sales increased significantly due to higher pricing. Personal Health Care organic sales grew by double digits due to increased pricing, favorable mix, and volume growth through innovation and a robust respiratory season.

The Fabric and Home Care segment's organic sales reached $7.016 billion, with an increase of 9%. Fabric Care organic sales grew by high single digits due to increased pricing, while Home Care organic sales increased by double digits due to higher pricing and favorable product mix, although volume declines were mainly experienced in Europe.

The Baby, Feminine and Family Care segment's organic sales increased by 6% to $5.062 billion. Baby Care organic sales increased moderately due to increased pricing, but volume declines were primarily experienced in Europe. Feminine Care organic sales increased by low teens driven by increased pricing and favorable geographic and product mix.

P&G said the company now raised its guidance for fiscal 2023 all-in sales to grow approximately 1% versus the prior fiscal year, from a prior guidance range of down one percent to in-line. 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 to 5%.