CINCINNATI–(BUSINESS WIRE)–The Procter & Gamble Company (NYSE:PG) has reported impressive first quarter fiscal year 2023 net sales reaching $20.6 billion, marking a one percent increase compared to the previous year. When adjusting for the effects of foreign exchange, acquisitions, and divestitures, the organic sales soared by seven percent. The company recorded diluted net earnings per share at $1.57, reflecting a two percent decrease compared to last year’s EPS.
During this quarter, the operating cash flow stood at $4.1 billion, with an adjusted free cash flow productivity rate of 86%. Procter & Gamble returned nearly $6.3 billion to its shareholders through approximately $2.3 billion in dividend payments and $4 billion in common stock repurchases, showcasing its commitment to shareholder value.
|
$ billions, except EPS |
||||||||
|
First Quarter |
||||||||
|
GAAP |
2022 |
% Change |
|
Non-GAAP* |
2023 |
2022 |
% Change |
|
|
Net Sales |
20.6 |
20.3 |
1% |
|
Organic Sales |
n/a |
n/a |
7% |
|
Diluted EPS |
1.57 |
1.61 |
(2)% |
|
Core EPS |
1.57 |
1.61 |
(2)% |
|
*Please refer to Exhibit 1 – Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures. |
||||||||
“We delivered solid results in our first quarter of fiscal 2023 in a very difficult cost and operating environment,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. “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.”
In-Depth Analysis of July – September Quarter Performance
In the first quarter of fiscal year 2023, the company recorded net sales of $20.6 billion, which represents a modest one percent increase from the previous year. The unfavorable foreign exchange fluctuations accounted for a six percent reduction in net sales. However, when excluding these impacts, the organic sales surged by seven percent, driven primarily by a nine percent rise in pricing and a one percent improvement from a favorable product mix. This positive trend was, however, somewhat countered by a three percent decline in shipment volumes, highlighting the challenges faced in maintaining volume amidst pricing adjustments.
|
July – September 2022 Performance Metrics |
||||||||
|
Net Sales Drivers (1) |
Volume |
Foreign Exchange |
Price |
Mix |
Other (2) |
Net Sales |
Organic Volume |
Organic Sales |
|
Beauty |
(1)% |
(6)% |
7% |
(2)% |
2% |
—% |
4% |
|
|
Grooming |
—% |
(8)% |
8% |
(4)% |
—% |
1% |
5% |
|
|
Health Care |
(2)% |
(5)% |
6% |
4% |
—% |
3% |
||
|
Fabric & Home Care |
(4)% |
(6)% |
11% |
1% |
(1)% |
1% |
||
|
Baby, Feminine & Family Care |
(3)% |
(5)% |
8% |
1% |
—% |
6% |
||