Procter & Gamble (P&G) has reported a 5% net sales increase year-on-year to $20.3bn in its first quarter fiscal year results.
Organic sales for the quarter increased 4%, driven by a 2% increase in volume, a 1% increase in pricing and a positive mix impact of 1%.
Operating income for the three months was down 5% to $5bn and pre-tax profit was also down 5% to $5bn.
The company said the volume increase was driven by “strong consumer demand for superior products and innovation, partially offset by a high base period in some markets due to rebuilding of inventories by retailers”.
It added that a positive mix was driven by the “disproportionate volume growth of the North America region, the Health Care business and premium products, all of which have higher than company average selling prices”.
David Taylor, Chairman, President and Chief Executive, said: “We delivered solid results in our first quarter of fiscal 2022 in a challenging cost and operating environment.
“These results keep us on track to deliver our top-line, bottom-line and cash targets for the fiscal year.
“We remain focused on executing our strategies of superiority, productivity, constructive disruption and continually improving P&G’s organisation structure and culture.
“These strategies enabled us to build strong momentum before the Covid crisis and accelerate progress as we navigate through the crisis, and they remain the right strategies to deliver balanced growth and value creation.”
In the Baby, Feminine and Family Care segment – which includes tissue and towel products – the company reported net sales of $4.8bn, up 3%.
Organic sales increased 4% compared with the year-ago period, while Family Care’s organic sales decreased mid-single digits.
The company said higher volumes were “more than offset by increased promotional spending versus a base with historically low promotional activity and unfavourable mix due to larger pack sizes”.
P&G said it continues to expect that the fiscal year 2022 all-in sales growth is in the range of 2-4% versus the prior fiscal year.
It also maintained its outlook for organic sales growth in the range of 2-4%.