Earnings Results: • Organic sales grew 3% with volume in line with prior year and pricing contributing 3 points • Growth across 8 of 10 product categories and geographies including North America, Europe, Asia Pacific Focus Markets, Latin America, and Europe Enterprise Markets • Core earnings per share up 11% versus prior year, or 18% on a currency-neutral basis
Future Guidance: • Maintaining organic sales growth guidance of 4-5% for fiscal year 2024 • Raising fiscal 2024 core earnings per share growth outlook to 10-11% • Expects to pay over $9 billion in dividends and repurchase $5-6 billion in common stock, totaling $14-15 billion in cash returned to shareholders
P&G delivered solid sales and market share results in a challenging and volatile operating environment. The company saw broad-based growth across most of its categories and geographies, with a few exceptions such as Greater China and some European enterprise and Asia Pacific, Middle East, Africa countries. These headwinds had a 150 basis point impact on total company sales for the quarter but are expected to moderate or annualize over the coming periods.
Consumer demand for P&G brands remains strong, especially in the U.S., with all outlet consumption value growth of 5%. The company is growing or holding volume share in most geographies. P&G continues to invest in innovation, brand building, and productivity improvements to drive market growth and superiority.
Looking forward, P&G expects markets to continue recovering with a shift towards volume growth. The company is maintaining its organic sales growth guidance and raising its earnings outlook, enabled by strong fiscal year-to-date results. P&G remains focused on executing its integrated strategy of a daily-use product portfolio, superiority, productivity, constructive disruption, and a nimble organization.
Notable quotes: “Execution of our integrated strategy drove solid sales and market share results and another quarter of strong earnings and cash results.” - Andre Schulten, CFO
”Our teams continue to operate with excellence, executing the integrated strategy that has enabled strong results over the past 5 years, and that is the foundation for balanced growth and value creation.” - Andre Schulten, CFO
”We continue to believe that the best path forward to deliver sustainable top and bottom line growth is to double down on this integrated strategy, starting with a commitment to deliver Irresistibly Superior propositions to consumers and retail partners fueled by productivity.” - Andre Schulten, CFO