P&G sales rise despite "difficult" operating environment

Procter & Gamble (P&G) has reported a 4% increase in sales to $20.1 billion for the third quarter, revealing growth across all segments. 

Organic sales, which exclude foreign exchange rates, acquisitions and divestitures, increased 7%. This was driven by higher pricing and favourable product mix, partially offset by a decrease in shipment volumes.

The owner of Olay, Pantene and Gillette saw organic sales rise 7% in its beauty segment, with skin and personal care sales up low single digits and hair care sales up double digits. Grooming segment organic sales increased 7%.

Sales in the healthcare segment lifted 9%, with oral care up high single digits due to increased pricing. Personal healthcare sales increased double digits, boosted by innovation and a strong respiratory season.

The baby, feminine and family care saw organic sales up 6%, with feminine care up low teens. This was driven by increased pricing and favourable geographic and product mix, partially offset by volume declines in enterprise markets.

Looking ahead, P&G expects sales for FY23 to grow approximately 1%, compared to a decrease of 1% previously. The group has also raised its outlook for organic sales growth to approximately 6%.

Jon Moeller, Chairman, President and CEO at Procter & Gamble, said: “We delivered strong results in what continues to be a very difficult cost and operating environment.

"P&G remains 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 organisation structure.

"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.”