Quarterly performance
Trends
On a reported basis, P&G recorded single-digit sales declines across its Beauty, Grooming, and Baby, Feminine & Family Care segments during the second quarter while sales inched up in the Health Care and Fabric & Home Care segments by 2% and 1% respectively.
On an organic basis, sales increased across all segments, driven by higher pricing, with the exception of Grooming, which remained flat. The highest growth came from Health Care and Fabric & Home Care which both saw sales increase 8%. Organic sales gains were offset by volume declines across all segments.
Within the Beauty segment, Hair Care sales rose in the mid-single digits helped by pricing but this was partly offset by volume declines due to market contraction. Within Health Care, Oral Care volumes were impacted by portfolio reduction in Russia and pandemic-related disruptions in Greater China. Organic sales in Personal Care increased in the high-teens due to pricing, favorable mix and volume growth driven by the cough, cold and flu season.
Outlook
P&G raised its sales outlook for fiscal year 2023 and now expects all-in sales to be down 1% to in-line versus the prior fiscal year. The previous expectation was for a decline of 3% to 1%. In addition, organic sales is now expected to grow 4-5% YoY versus the prior range of 3-5% growth.
The company maintained its full-year outlook for EPS growth in the range of in-line to up 4% versus last year. Due to significant cost headwinds from commodity and materials costs and foreign exchange impacts, EPS is likely to trend towards the lower end of the guidance range.