P&G, one of the world’s leading consumer goods companies, recently announced its fiscal year 2024 second quarter results, showcasing steady growth and positive performance across various segments. The company reported net sales of $21.4 billion for the second quarter, representing a three percent increase compared to the previous year. Organic sales, which exclude the impacts of foreign exchange and acquisitions/divestitures, saw an even stronger growth of four percent.
The increase in organic sales was primarily driven by a four percent rise in pricing, although this was partially offset by a one percent decrease in organic shipment volumes.
Within the Beauty segment, P&G achieved net sales of $3.849 billion, marking a one percent year-on-year increase. Organic sales in this segment also saw a one percent growth compared to the previous year. However, the Skin and Personal Care category experienced a decline in organic sales by mid-single digits due to lower sales volumes and an unfavorable mix resulting from reduced sales of SK-II. In the conference call, P&G stated that the SK-II brand in Greater China was down 34% due to soft market conditions and a temporary headwind for Japanese brands in the market.
On the other hand, Hair Care organic sales soared by high single digits, benefiting from increased pricing, a premium product mix, and volume growth, primarily in North America.
P&G’s Grooming segment achieved notable success in the second quarter, with net sales reaching $1.734 billion, representing a six percent year-on-year increase. The segment’s organic sales performed even better, growing by nine percent compared to the previous year. This impressive growth was fueled by higher pricing, a premium product mix, and increased volume.
The Health Care segment also demonstrated positive results, with net sales of $3.172 billion, a four percent increase year-on-year. Organic sales in this segment rose by two percent compared to the previous year. Within Health Care, Oral Care organic sales experienced mid-single-digit growth, primarily driven by increased pricing and a premium product mix. However, this growth was partially offset by volume declines, mainly in Latin America and Asia.
Looking ahead, P&G provided its fiscal year 2024 guidance, stating that it expects all-in sales growth to be in the range of two to four percent compared to the prior year. However, the company anticipates foreign exchange to pose a headwind of approximately one to two percentage points to all-in sales growth. P&G also maintained its outlook for organic sales growth in the range of four to five percent.
