Procter & Gamble (P&G) sales topped US$82bn in 2023, driven by a series of price hikes made throughout the year.
The higher pricing, which was implemented to mitigate a lower consumer demand, led to organic sales growth of 7%.
This was backed up by a solid performance from the brand owner’s beauty segment, with revenue up 11%.
Skin and Personal Care recorded a double-digit sales boost during the period, with Japanese skin care brand SK-II seeing record growth in 2023.
Hair Care sales also benefited from the increased product costs, but the category was partially offset by lowered demand in Asia and particularly China.
Organic sales for P&G’s grooming arm, which includes Gillette and The Art of Shaving, were also up 8% compared with 2022.
For the final quarter of 2023, P&G’s sales increased by 5% to $20.6bn.
Organic sales, which exclude acquisitions and divestitures, were up 8% in the quarter thanks to the higher pricing, but struggled slightly against a decrease in shipment volumes.
“The April-June quarter provided a very strong finish to fiscal year 2023 – top-line growth, bottom-line growth, and cash generation,” said Jon Moeller, P&G’s Chairman of the Board, President and CEO.
“The team met or exceeded our going-in plans for sales, earnings and cash in a difficult operating environment and despite significant cost headwinds.”
P&G has set its outlook for the 2024 financial year to be in the range of 3-4% versus the prior year.
“As we look forward to fiscal 2024, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity – each in-line with our long term growth algorithm, despite continued macroeconomic and geopolitical challenges,” added Moeller.
