Procter & Gamble Q1 earnings beat estimates

Net sales in the quarter ticked up 1% to $20.6bn, coming in ahead of expectations of $20.3bn. Meanwhile, diluted earnings per share declined to $1.57 from $1.61, but were ahead of expectations of $1.54. Net earnings fell 4% to $3.9bn.

Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, ticked up 7%. The company said this was down to higher pricing and positive product mix, partially offset by a fall in shipment volumes.

P&G said its current outlook for 2023 now includes headwinds of around $1.3bn after tax, due to unfavourable forex rates, higher commodity and materials costs, and higher freight costs. Combined, these items are a $3.9bn after-tax headwind, or approximately $1.57 per share, to fiscal 2023 earnings, versus fiscal 2022. This is up by $600m from the headwinds it guided to in July, mainly due to forex.

Chairman, president and chief executive Jon Moeller said: "We delivered solid results in our first quarter of fiscal 2023 in a very difficult cost and operating environment.

"These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds. We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organisation structure. These strategies have enabled us to build and sustain strong momentum."