Procter & Gamble Company’s (P&G) net sales in the first quarter of fiscal year 2023 were $20.6 billion, a one percent increase versus the prior year. Unfavorable foreign exchange had a six percent impact on net sales.
 
Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased seven percent. The organic sales increase was driven by a nine percent increase from higher pricing and a one percent increase from positive product mix, partially offset by a three percent decrease in shipment volumes.
 
“We delivered solid results in our first quarter of fiscal 2023 in a very difficult cost and operating environment,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. “These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds.”

Business Segments

Beauty segment organic sales increased four percent versus year ago. Skin and Personal Care organic sales increased mid-single digits due to innovation-driven volume growth and increased pricing, partially offset by negative mix from the decline of SK-II. Hair Care organic sales increased mid-single digits driven by increased pricing, partially offset by volume declines related to market contraction.
 
Grooming segment organic sales increased five percent versus year ago due to increased pricing, partially offset by negative mix due to market slowdown of appliances.
 
Health Care segment organic sales increased eight percent versus year ago. Fabric and Home Care segment organic sales increased eight percent versus year ago.
 
Baby, Feminine and Family Care segment organic sales increased six percent versus year ago. Baby Care organic sales increased mid-single digits due to increased pricing, partially offset by volume declines including portfolio reduction in Russia.

Full Year Guidance

P&G reduced its guidance range for fiscal 2023 all-in sales to be down three percent to down one percent versus the prior fiscal year. The company maintained its outlook for organic sales growth in the range of three to five percent. Foreign exchange is now expected to be a six-percentage point headwind to all-in sales growth for the fiscal year.
 
“We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organization structure. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to navigate through the near-term challenges we’re facing and continue to deliver balanced growth and value creation,” said Moeller.