P&G has announced its first quarter fiscal 2023 results that reported net sales of $20.6 billion, an increase of 1% compared to the previous year.
Gross profit for the quarter was $9,766 million, compared to $9,973 million in the previous year.
Operating income was $4,939 million, compared to $5,023 million in the previous year.
Net sales for the beauty segment were $3,961 million. Organic sales for the beauty segment increased 4%, compared to the previous year.
Skin and personal care organic sales increased mid-single digits due to innovation-driven volume growth and increased pricing, partially offset by negative mix from the decline of SK-II. SK-II has been impacted by difficulties in the China market, as noted by Benzinga.
Hair care organic sales increased mid-single digits driven by increased pricing, partially offset by volume declines related to market contraction.
Net sales for the grooming segment were $1,625 million.
Organic sales for the grooming segment increased 5%, compared to the previous year, due to increased pricing, partially offset by negative mix due to market slowdown of appliances.
Fiscal 2023 Guidance
P&G has reduced its guidance range for fiscal 2023 all-in sales to be down 3% to down 1%, compared to the previous fiscal year.
Jon Moeller, chairman of the board, president and CEO 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 organization 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.”