P&G sees sales rise in Q1

Procter & Gamble (P&G) has released its financial results for the first quarter, revealing a 1% increase in net sales to £18.3 billion ($20.6 billion).

The owner of Olay, Gillette and Herbal Essences reported a 4% decrease in net earnings to £3.4 billion ($3.9 billion), compared to £3.6 billion ($4.1 billion) in the same period in 2021.

Gross profit decreased 2% to £8.6 billion ($9.7 billion), with gross margin down 160 basis points. The company said this was attributed to "higher material and freight costs, product/package reinvestments and negative product mix", partially offset by increased pricing and gross productivity savings.

For organic beauty sales, P&G reported a 4% increase and growth across all categories. Skincare organic sales were up mid-single digits, due to innovation-driven volume growth and increased pricing, partially offset by negative mix from the decline of SK-II.

Haircare organic sales also increased mid-single digits, driven by increased pricing and partially offset by volume declines related to market contraction. Grooming organic sales were up 5%. This was due to increased pricing, partially offset by negative mix due to market slowdown of appliances.

Health care organic sales increased 8%, with oral care sales up due to increased pricing and favourable premium product mix, partially offset by volume declines due to market contraction.

Baby, feminine and family care organic sales increased 6%. Feminine care organic sales increased double digits, driven by increased pricing and positive geographic mix, partially offset by volume declines due to portfolio reduction in Russia.

Jon Moeller, Chairman, President and CEO of P&G, said: “We delivered solid results in our first quarter of fiscal 2023 in a very difficult cost and operating environment.

"These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds. We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organisation structure."