Last week, The Procter & Gamble Company (P&G) reported third quarter fiscal year 2023 net sales of $20.1 billion, an increase of four percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased seven percent.
 
Considering the difficult cost and operating environment, the slowing economy and sticky inflation, some analysts were surprised by the company’s better-than-expected results.
 
P&G chairman and CEO Jon Moeller, however, told Yahoo Finance that the company’s resilient quarter was not a shock.
 
Also, asked if he is seeing any signs of a potential recession, Moeller said: “We are not.”

Shift in Consumer Behavior

According to Moeller, P&G has witnessed consumers making “more careful usage of the product they have bought.”
 
He has observed that consumers might use a half-sheet of Bounty paper towel as opposed to a whole sheet.
 
“But generally again, just looking at the numbers, the consumer is holding up extremely well," Moeller added.
 
Looking forward, P&G raised its guidance for fiscal 2023 all-in sales to grow approximately one percent versus the prior fiscal year, from a prior guidance range of down one percent to in-line. The Company also raised its outlook for organic sales growth to approximately six percent versus the prior fiscal year from a prior growth range of four to five percent.