P&G posts mixed Q4 2022 results as Covid lockdowns in China impact sales

By Alessandro Carrara | Published: 1-Aug-2022

Quarterly sales for the conglomerate’s beauty division remain unchanged from the same quarter in 2021

P&G has reported mixed Q4 2022 results due to a slump in sales volumes, brought on by Covid-19 lockdowns in China and Russia's invasion of Ukraine.

Net sales for the quarter grew by 3% to US$19.5bn, driven by an 8% increase in pricing to offset the rising costs of commodities.

Organic sales for the conglomerate’s beauty division remain unchanged from the same quarter in 2021.

Hair care sales increased marginally during the period and were partially offset by volume declines in China.

Skin and personal care sales slipped in Q4, however, attributed to a decline in P&G’s super-premium SK-II brand.

The group said the category was partially offset by increased pricing and volume growth from new innovation launches.

Health care fared better with a 9% rise in organic sales, led by oral care and personal health care growth.

P&G also shared its full-year 2022 results, with net sales increasing 5% to $80.2bn.

The financial growth was attributed to a 2% increase in sales volumes and a 4% increase in prices for consumer goods during the year.

“Fiscal year 2022 was another strong year,” said Jon Moeller, Chairman of the Board, President and CEO.

“The P&G team’s execution of our integrated strategies delivered strong top-line growth, earnings growth, and significant cash return to shareowners in the face of severe cost and operational headwinds.”

P&G said it expects fiscal year sales for 2023 to be up by 2% versus this year, but also acknowledged the challenges of the current market.

“As we look forward to fiscal 2023, we expect another year of significant headwinds,” added Moeller.

“We remain committed to our integrated strategies of superiority, productivity, constructive disruption, and an agile and accountable organisation structure.

“They remain the right strategies to step forward into the near-term challenges we are facing and continue to deliver balanced growth and value creation.”

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