Currency volatility continues to weigh on Procter & Gamble as both earnings and earnings declined in the second quarter.
P&G net sales were $20.77 billion, down 1% from the prior year. Unfavorable exchange rates impacted his 6% on net sales. Analysts had predicted he would make $20.73 billion.
Of which, Beauty net sales were down 3%, Grooming was down 9%, and Baby, Feminine and Family Care were down 1%. Conversely, health care rose 2% and fabrics and home care rose 1%.
Further breaking down organic sales in Beauty, Skincare and Personal Care, excluding the impact of foreign currency, acquisitions and divestments, grew low single digits driven by innovation-led volume growth and pricing. , partially offset by a negative composition due to COVID-19. A related decline in SK-II, according to the company. Hair Care organic sales were up mid-single digits on higher prices, partially offset by lower volume due to market contraction.
Last week, P&G Beauty acquired black-founded textured hair care brand Mielle Organics for an undisclosed amount. The brand produces hair and skin care products sold at major mass retailers such as Walmart, Target and CVS.
P&G’s net income was $3.9 billion, down 7% from a year ago. In line with Wall Street expectations, diluted net earnings per share fell 4% to $1.59.
P&G maintained its 2023 diluted earnings per share growth outlook in the inline to 4% range to 2022 EPS of $5.81. The company added that it continues to expect EPS results to be near the lower end of its guidance range for the fiscal year, given continued significant cost headwinds from commodity and material costs and the impact of foreign exchange. .
Increased sales guidance for fiscal 2023 to a range of flat to down 1% from 3% to down 1% year over year. It also raised its organic sales growth guidance to a range of 4-5% from a range of 3-5% in the previous fiscal year.
P&G President and CEO John Moeller said: Progress against our plans for previous fiscal years allows us to raise our sales growth outlook for fiscal 2023 and maintain our EPS growth guidance range despite significant headwinds. “