P&G sales impacted by foreign exchange rates

Procter & Gamble (P&G) has reported a 1% drop in sales to £16.7 billion ($20.8 billion) for the second quarter ending 31 December 2022, reflecting the impacts of foreign exchange rates, acquisitions and divestitures.

Organic sales, which excludes foreign exchange rates, acquisitions and divestitures, increased 5%. This was driven by higher pricing and positive product mix, partially offset by increased shipment volumes.

The owner of Olay, Pantene and Gillette saw organic sales rise 3% in its beauty segment, with skin and personal care sales up low single digits and hair care sales up mid-single digits.

Organic sales in the grooming segment remained unchanged, as higher pricing was fully offset by volume decline and negative mix, due to market contraction and retailer inventory reductions.

Healthcare organic sales increased 8%, with oral care up low single digits due to increased pricing and favourable geographic mix. Personal health care sales were up high-teens due to increased pricing, favourable mix and volume growth driven by a "strong" cough, cold and flu season.

Organic sales in baby, feminine and family care increased 4%, with feminine care sales up high single digits driven by increased pricing and positive geographic mix, partially offset by volume declines in emerging markets.

Looking ahead, P&G has raised its outlook for FY23. It now expects organic sales growth of 4-5%, compared to 3-5% previously.

Jon Moeller, Chairman, President and CEO of P&G, said: “We delivered solid results in the second quarter of fiscal year 2023 in what continues to be a very difficult cost and operating environment.

"Progress against our plan fiscal year to date enables us to raise our sales growth outlook for fiscal 2023. We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organisation structure. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to navigate through the near-term challenges we’re facing and continue to deliver balanced growth and value creation.”

Last week, P&G announced its acquisition of Mielle Organics in a move that hopes to further expand access to healthy hair products and services for Black women around the world.