Growth in the super-premium SK-II and higher product prices drove the skin and personal care business category.
This evening (July 28), Procter & Gamble (P&G) reported its financial report of FY2023 (July 1, 2022 – June 30, 2023) and fourth quarter results.
For FY2023, P&G achieved net sales of $82.006 billion, an increase of 2% from the prior year. Its organic sales, which exclude the impact of foreign exchange, acquisitions, and divestitures, increased 7%. Diluted net income per share was $5.90, up 2% from the prior year.
For the fourth quarter of the current fiscal year (April-June 2023), P&G net sales were $20.553 billion, an increase of 5% from the prior year. Organic sales excluding the impact of foreign exchange, acquisitions and divestitures grew 8%.
(Credit: from P&G’s financial report)
In response, Jon Moeller, Chairman of the Board, President and Chief Executive Officer, P&G, said that the fourth quarter of FY2023 capped off a strong fiscal year. The team exceeded expectations at a time when the operating environment remains difficult, even though the Group’s costs remain high. Looking ahead to FY2024, the Group will continue to drive sustainable sales growth.
Looking at the business segments, in FY2023, net sales of the Beauty segment, which includes brands such as SK-II, OLAY, Pantene, and Head & Shoulders, amounted to $15.008 billion, up 2% year-on-year, and organic sales increased 11% year-on-year. Growth in the super-premium SK-II and higher product prices drove the skin and personal care business category up more than tenfold compared to the previous year, which was impacted by the outbreak.
(Credit: From P&G’s financial report)
As P&G’s largest business segment, the Fabric & Home Care segment reported sales of $28.371 billion in fiscal year 2023, with organic sales up 8% year-on-year.
Among them, the Fabric & Home Care segment achieved mid-single-digit growth driven by higher prices and an aggressive product mix, but part of the growth was offset by a decline in sales in Greater China. Its Home Care brands saw double-digit organic sales growth, but part of the growth was likewise offset by market softness.
In addition, on an organic sales basis, P&G Grooming segment sales increased 8% to $6.419 billion, thanks to higher prices, which partially offset volume declines caused by trade disruptions in Europe. Baby, Feminine and Family Care grew 9% to $20.217 billion, with sales in the Baby category achieved high single-digit growth and the Health Care segment grew 5% year-on-year to $11.226 billion.
For fiscal year 2024, P&G expects total sales for the year to grow 3% to 4% year-over-year, with foreign exchange expected to adversely affect overall sales growth by about 1%. Its organic sales growth is in the range of 4% to 5%.
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