Beauty segment organic sales inched up 3%, while grooming plateaued versus Q2 2022
Old Spice forms part of P&G's Skin and Personal Care unit
Net sales for the second quarter fiscal year 2023 were US$20.8bn, down 1% from $21bn in the same quarter last year.
Organic sales, excluding the impacts of foreign exchange and acquisitions and divestitures, increased 5%.
This was due to higher pricing mitigating lower demand.
Organic sales for P&G’s Beauty segment grew 3%, with its Skin and Personal Care unit (encompassing the Olay, Old Spice and SK-II brands) organic sales increasing in the low-single digits.
This, said P&G, was due to innovation-driven volume growth and higher pricing, which was partially offset by negative mix from Covid-related declines in SK-II.
Hair Care, including Head & Shoulders, Herbal Essences and Pantene, saw organic sales increase mid-single digits, driven by increased pricing, partially offset by volume declines due to market contraction.
Organic sales for its Grooming segment – which includes Gillette and The Art of Shaving – were unchanged versus a year ago, as higher prices were fully offset by volume decline, market contraction and retailer inventory reductions of appliances.
P&G lifted its outlook for 2023 sales growth a touch to a range of 4%-5%, up from its prior estimate range of 3%-5%.
Jon Moeller, P&G’s Chairman of the Board, President and CEO, commented: “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.”
He continued: “We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organisation structure.
“These strategies have enabled us to build and sustain strong momentum.
“They remain the right strategies to navigate through the near-term challenges we’re facing and continue to deliver balanced growth and value creation.”