P&G Sales Are Growing in Every Category
The Procter & Gamble Company (NYSE:PG) reported earnings results for its second quarter of fiscal 2022 recently, with net sales coming in at $21.0 billion, an increase of 6% versus the prior-year quarter.
Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales also increased 6%, the company said in a press release. Diluted net earnings per share were $1.66, an increase of 13% versus year-ago GAAP EPS and an increase of 1% versus prior-year core EPS.
Operating cash flow was $5.1 billion for the quarter. Adjusted free cash flow productivity was 106%. The company returned nearly $7 billion of cash to shareholders via $2 billion of dividend payments and nearly $5 billion of common stock repurchases, management reported.
We delivered very strong top-line growth and made sequential progress on earnings in the face of significant cost headwinds, said Jon Moeller, President and CEO, in the statement. These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners. Our focus remains on the strategies of superiority, productivity, constructive disruption and continually improving P&Gs organization structure and culture. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to deliver balanced growth and value creation.
The increase in organic sales was driven by a 3% increase in shipment volumes and three percentage points of increased pricing to help offset the significant commodity and other input cost increases. Mix was neutral to net sales growth.
Beauty segment organic sales increased 2% versus a year ago. Skin and Personal Care organic sales increased in the low single digits, primarily driven by volume growth in Personal Care due to innovation, market growth and pricing, partially offset by negative product mix. Hair Care organic sales increased low single digits, primarily driven by increased pricing.
Grooming segment organic sales increased 5% versus the prior-year quarter, with Shave Care organic sales rising mid-single digits due to volume growth, increased pricing and positive product and geographic mix from growth in developed markets.
Appliances organic sales increased mid-single digits due to increased pricing and positive mix driven by the growth of premium shavers and stylers. This was partially offset by lower volumes versus a high base period, which benefited from a pandemic-related consumption surge of in-home shavers and stylers.
Health Care segment organic sales increased 8% year-over-year, while Oral Care organic sales increased in the low single digits, driven by positive mix from a higher proportion of premium paste and whitening products and innovation-based price increases.
Personal Health Care organic sales was the clear winner, increasing about 20% due primarily to growth in respiratory products due to a more intense cough/cold/flu season versus the prior year. Each region delivered double digit organic sales growth for the quarter in Personal Health Care.
This article first appeared on GuruFocus.
