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

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.
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