Procter & Gamble has reported its second quarter 2023 results which showed net sales of $20.8 billion, a decrease of 1% as compared to the previous year.
Gross profit for the quarter was $9.9 billion, as compared to $10.3 billion in the previous year.
Operating income was $4.8 billion, as compared to $5.7 billion in the previous year.
Net earnings were $4.0 billion for the quarter, as compared to $4.2 billion in the previous year.
Organic sales increased 3%, as compared to the previous year. Skin and personal care organic sales increased low single digits due to innovation-driven volume growth and higher pricing, partially offset by negative mix from COVID-related declines in SK-II.
Hair care organic sales increased mid-single digits driven by increased pricing, partially offset by volume declines due to market contraction.
Organic sales were unchanged as compared to the previous year, as higher pricing was fully offset by volume decline and negative mix, due to market contraction and retailer inventory reductions of appliances.
The company also raised its outlook for organic sales growth to a range of 4-5%, as compared to the the previous fiscal year from a prior growth range of 3-5%.
Fiscal Year 2023 Guidance
P&G raised its guidance for fiscal 2023 all-in sales to a range of down 1% to in-line, as compared to the previous year from a prior range of down 3% to down 1%.
Jon Moeller, chairman of the board, president and CEO, 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 and maintain our guidance range for EPS growth despite 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.”