The Procter & Gamble Company (PG) said it delivered solid results in first quarter in a very difficult cost and operating environment. Net earnings per share decreased by two percent year-over-year, driven by a decline in operating margin partially offset by higher net sales and a reduction in shares outstanding. Currency-neutral EPS were
up seven percent. Organic sales increased seven percent, for the quarter. The company said the organic sales increase was driven by a nine percent increase from higher pricing and a one percent increase from positive product mix, partially offset by a three percent decrease in shipment volumes.
The Procter & Gamble Company maintained its guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds. The company maintained its outlook for organic sales growth in the range of three to five percent. P&G maintained its outlook for fiscal 2023 net earnings per share growth in the range of inline to up four percent versus fiscal 2022 EPS of $5.81. The company noted that given increased foreign exchange impacts, it now expects EPS results to be towards the low end of the fiscal year guidance range.
P&G reduced guidance range for fiscal 2023 all-in sales to be down three percent to down one percent. Foreign exchange is now projected to be a six-percentage point headwind to all-in sales growth for the fiscal year.
P&G continues to expect adjusted free cash flow productivity of 90% and expects to pay around $9 billion in dividends and to repurchase $6 billion to $8 billion of common shares in fiscal 2023.
First quarter bottom line came in at $3.94 billion, or $1.57 per share compared with $4.11 billion, or $1.61 per share, a year ago. Analysts on average had expected the company to earn $1.54 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 1.3% to $20.61 billion from $20.34 billion last year. Analysts on average had estimated $20.33 billion in revenue.
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