Gillette Maker Procter & Gamble's Q2 Revenue Tops Estimate By A Whisker; Bottom-Line Matches Street View

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  • Procter & Gamble Co PG reported a second-quarter FY23 sales decline of 1% year-on-year to $20.77 billion, marginally beating the consensus of $20.73 billion.
  • Organic sales increased 5%, driven by a 10% increase in from higher pricing and a 1% increase from positive product mix, partially offset by a 6% decrease in shipment volume.
  • Sales in the Beauty segment fell 3%, the Grooming segment contracted 9%, and Health Care rose 2%.
  • Adjusted EPS of $1.59 was in-line with the analyst consensus.
  • Gross profit decreased 4% Y/Y to $9.87 billion. The reported gross margin decreased by 160 basis points to 47.5%.
  • Operating margin contracted 170 basis points to 23%, while operating income for the quarter fell 7% to $4.8 billion.
  • P&G held $6.85 billion in cash and equivalents as of December 31, 2022.
  • "We delivered solid results in the second quarter of fiscal year 2023 in what continues to be a very difficult cost and operating environment," said Chairman and CEO Jon Moeller.
  • "Progress against our plan fiscal year to date enables us to raise our sales growth outlook for fiscal 2023 and maintain our guidance range for EPS growth despite significant headwinds."
  • Outlook: P&G raised FY23 organic sales outlook from 3% - 5% to a growth of 4% - 5%.
  • P&G raised its guidance for FY23 all-in sales to a range of down 1% to in-line versus the prior range of down 3% to down 1%.
  • P&G maintained its outlook for FY23 EPS growth to be in-line to up 4% versus FY22 EPS of $5.81. Specifically, given continued significant cost headwinds from commodity and materials costs and foreign exchange impacts, it continues to expect EPS results to be towards the lower end of the guidance range.
  • P&G also expects to pay over $9 billion in dividends and repurchase $6 billion - $8 billion of common shares in FY23.
  • Price Action: PG shares are trading lower by 2.07% at $142.48 in premarket on the last check Thursday.
  • Photo Via Company
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