We’ve all noticed inflation when we go to the grocery store or buy other consumer goods. Whether it’s higher prices for the same amount of product, or the same price for less product, consumer goods companies have done a good job at passing along increases to their customers. 🥫
Fun for them, but not so fun for us. 👎
That’s the primary reason Procter & Gamble delivered better-than-expected results and raised its 2023 sales guidance. Its adjusted earnings per share of $1.37 on revenues of $20.07 billion topped the expected $1.32 and $19.32 billion. 💪
Net sales jumped 4%, with organic sales rising 7% during the quarter. Volumes fell 3% as cash-strapped consumers opted for cheaper alternatives. However, price increases of 10% YoY helped offset that drop-off in volume. 🔺
While this marks the fourth consecutive quarter of shrinking volume, executives say consumption trends are beginning to stabilize globally. Volumes improved from last quarter and are down just 2% YoY when excluding the company’s Russian business. Moreover, in its largest market, the U.S., volumes actually increased and are beginning to pick up in its second-largest market, China. 🛒
Its segments’ net sales break down like this:
- Beauty +3% YoY
- Grooming +1% YoY
- Health Care +6% YoY
- Fabric & Home Care +5% YoY
- Baby, Feminine & Family Care +3% YoY
Looking ahead, the company raised its fiscal 2023 all-in sales growth guidance to 1% from 0% to -1%. It also increased its organic sales growth outlook to 6% YoY, up from a 4% to 5% range. 📝
$PG shares were up over 3% today, approaching all-time highs from ’21 and ’22. 📈
