P&G sales rise, despite pandemic-related challenges

Procter & Gamble Company, owner of Olay, Herbal Essences and Braun, has released its financial results for the fourth quarter and fiscal year 2022.

For the fiscal year, the group's net sales increased by 5% to £66.2 billion ($80.2 billion). This growth was credited to an increase in organic volume, higher pricing and positive mix.

P&G also reported fourth quarter net sales of £16.1 billion ($19.5 billion), an increase of 3% against the previous year. This was driven by an increase in pricing, partially offset by a decrease in volume primarily due to pandemic-related lockdowns in Greater China and reduced operations in Russia.

Organic sales from the group's beauty segment were unchanged. Haircare sales increased low single digits due to increased pricing, also partially offset by volume declines due to pandemic-related lockdowns in China and reduced operations in Russia.

Skin and personal care organic sales decreased low single digits, driven by negative mix due to decline of the super-premium SK-II brand impacted by pandemic-related challenges. This was partially offset by increased pricing and volume growth from innovation.

P&G's grooming segment organic sales increased 3%. Sales for shave care increased mid-single digits due to increased pricing, while sales for appliances decreased high-single digits due to market contraction versus a base period that benefited from pandemic-related consumption increases.

Jon Moeller, Chairman, President and CEO of P&G, said: "Fiscal year 2022 was another strong year. The P&G team’s execution of our integrated strategies delivered strong top-line growth, earnings growth, and significant cash return to shareowners in the face of severe cost and operational headwinds.

"As we look forward to fiscal 2023, we expect another year of significant headwinds. We remain committed to our integrated strategies of superiority, productivity, constructive disruption and an agile and accountable organisation structure. They remain the right strategies to step forward into the near-term challenges we are facing and continue to deliver balanced growth and value creation.”