- Procter & Gamble reported a sales growth of 3.0% year-over-year (+7% organic growth) in Q4 2022
- Procter & Gamble reported net sales of $19.5 billion
- The management has guided to 0-2% reported sales growth and 5-7% of organic sales growth for the fiscal year 2023
On July 29, 2022, Procter & Gamble reported a Q4 turnover of $19.5 billion (a growth of 3.0% year-over-year, +7% organic growth) on core earnings per share (EPS) of $1.21. For FY 2022, total sales stood at $80.2 billion and core EPS of $5.81.
Summary: Procter & Gamble’s Q4 2022 net sales grew by 3.0% (+7% organic growth) as compared to the same period in 2021. Procter & Gamble reports its sales across five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care:
- Beauty segment’s sales declined by 1.4% vs 2021 (unchanged organic sales growth) owing to low single-digit organic sales growth of hair care products but was partially offset by the decline in sales volume due to pandemic-related lockdowns in Greater China and reduced operations in Russia.
- Grooming segment’s sales declined by 3.5% vs 2021 (+3% organic sales growth) owing to increased organic sales of shave care, partially offset by the decline in sales volume due to pandemic-related lockdowns in Greater China and decreased organic sales of appliances.
- Health Care segment’s sales grew by 5.3% vs 2021 (+9% organic sales growth) owing to increased organic sales of oral care and personal health care products but was partially offset due to pandemic-related lockdowns in Greater China and reduced operations in Russia.
- Fabric and Home Care segment’s sales grew by 4.2% vs 2021 (+9% organic sales growth) owing to higher net pricing and increased organic sales of home care products but was offset by reduced operations in Russia.
- Beauty segment’s sales grew by 3.3% vs 2021 (+7% organic sales growth) owing to increased net pricing and increased organic sales of baby care and feminine care products but was offset due to reduced operations in Russia and competitive activity in developed markets.
The company reported earnings from operations of $3.6 billion during Q4 2022, resulting in GAAP operating margins of 18.4%. On the bottom line, the company reported a GAAP EPS of $1.21, and the core earnings came to $1.21 per share.
Guidance: The management has provided the following guidance for the fiscal year 2023:
- Sales growth in the range of 0-2% versus the prior fiscal year (5-7% of organic sales growth)
- Diluted net earnings per share (EPS) growth in the range of 0-4% versus fiscal 2022 GAAP EPS of $5.81.
- Capital spending is estimated to be approximately 5% of the net sales.