- Procter & Gamble Co PG shares are up Friday premarket following its Street-beating third quarter results. The company said it delivered strong results in what continues to be a very difficult cost and operating environment.
- PG reported third-quarter FY23 sales growth of 4% year-on-year to $20.07 billion, beating the consensus of $19.29 billion.
- Organic sales increased 7%, driven by a 10% increase from higher pricing and a 1% increase from favorable product mix, partially offset by a 3% decrease in shipment volume.
- Sales in the Beauty segment rose 3%, the Grooming segment gained 1%, and Health Care increased 6%.
- Adjusted EPS of $1.37 beat the analyst consensus of $1.32.
- Gross profit increased 7% Y/Y to $9.66 billion. The reported gross margin increased by 150 basis points to 48.2%.
- Operating margin expanded 40 basis points to 21.2%, while operating income for the quarter rose 6% to $4.24 billion.
- P&G held $7.59 billion in cash and equivalents as of March 31, 2023. The operating cash flow for the quarter was $3.9 billion.
- The company returned $3.6 billion of cash to shareholders via approximately $2.2 billion of dividend payments and $1.4 billion of common stock repurchases.
- "We delivered solid results in the first quarter of fiscal year 2023 in what continues to be a very difficult cost and operating environment," said Chairman and CEO Jon Moeller.
- "Our team's strong execution of our strategies and our progress through three quarters enable us to raise our fiscal year outlook for sales growth and cash return to shareowners and maintain our guidance range for EPS growth despite continued cost and foreign exchange headwinds."
- Outlook: P&G raised FY23 organic sales growth outlook from 4% - 5% to a growth of 6%.
- P&G raised its guidance for FY23 all-in sales to a range of up 1% versus the prior range of down 1% to flat.
- P&G maintained its outlook for FY23 EPS growth to be flat to up 4% versus FY22 EPS of $5.81. It expects EPS results towards the lower end of the fiscal year guidance range.
- P&G said its current fiscal 2023 outlook includes headwinds of approximately $1.3 billion after-tax due to unfavorable foreign exchange rates and $2.2 billion due to higher commodity and material costs.
- Combined, these items are a $3.5 billion after-tax headwind, or approximately $1.40 per share, to fiscal 2023 earnings.
- P&G also expects to pay over $9 billion in dividends and repurchase $7.4 billion - $8 billion of common shares in FY23.
- Price Action: PG shares are trading higher by 2.25% at $154.25 in premarket on the last check Friday.
- Photo Via Company
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