Chairman, President and CEO John Moorer said: “Our progress against our plan this year enables us to raise our revenue growth outlook for 2023 and maintain our EPS growth guidance range despite significant headwinds. We remain committed to our integrated strategy of excellence, productivity, constructive disruption, and an agile and accountable organizational structure that have enabled us to build and sustain strong momentum. These remain the right strategies to navigate the near-term challenges we face and continue to deliver balanced growth and value creation.”
In fact, P&G has raised its fiscal 2023 total revenue guidance to a range of down 1% inline from the range of 1-3% in the previous fiscal year. The company has increased its organic sales growth outlook to a range of 4-5% from a previous range of 3-5%. The company expects foreign exchange to create a 5% headwind to total sales growth for the full year.
Here are the organic results by segment:
• Beauty organic sales increased 3%. Skin and personal care sales grew low single digits driven by innovation-driven volume growth and price increases, but a negative mix due to a decline in his SK-II related to COVID-19 Partially offset by an element. Hair Care organic sales were up mid-single digits on higher prices, partially offset by lower volume due to market contraction.
• Grooming organic sales were flat. Higher prices were more than offset by lower volumes and a negative mix due to a shrinking market and reduced inventories at consumer electronics retailers.
• Healthcare organic sales increased 8%. Oral Care organic sales grew low-single digits on higher pricing and favorable geographic mix, offset by portfolio contraction in Russia and COVID-19-related disruptions in Greater China Partially offset by lower sales volumes. Personal Health Care organic sales increased in the high teens driven by price increases resulting from the severe cough, cold and flu season, favorable product mix and volume growth.
• Fabrics and home care organic sales increased 8%. Fabric Care organic sales increased high single digits driven by higher prices, partially offset by volume declines driven by market contraction and higher prices, primarily in Europe. Home Care organic sales increased high single digits due to price increases, partially offset by volume declines compared to a high base period when consumption of cleaning products increased.
• Baby, feminine and family care sales increased 4%. Baby Care organic sales increased low single digits due to higher prices, partially offset by lower volumes due to market contraction. Feminine Care organic sales were up high single digits on higher pricing and a favorable geographic mix, partially offset by lower volumes in Emerging Markets. Family Care organic sales increased low single digits due to higher prices, partially offset by volume declines due to market contraction and softening market share.