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Procter & Gamble Co on Friday celebrated a strong finish to the year, as it delivered annual growth despite a difficult operating environment and ‘significant’ cost headwinds.
For the year ended June 30, the Cincinnati, Ohio-based consumer goods firm reported net earnings of $14.74 billion, down just marginally from $14.79 billion a year prior.
Gross profit rose 3% to $39.25 billion from $38.03 billion, while operating income was up 2% to $18.13 billion from $17.81 billion. Earnings before income taxes were $18.35 billion, up 2% from $18.00 billion.
Net sales were $82.01 billion, up 2% from $80.19 billion the previous year.
This was in part thanks to organic sales, which increased 7%. Procter & Gamble attributed this growth to a 9% increase from higher pricing, as well as a 1% increase from favourable mix, partially offset by a 3% decrease in shipment volumes.
Chief Executive Officer Jon Moeller also noted ‘a very strong finish’ to the fiscal year, with ‘top-line growth, bottom-line growth, and cash generation’.
‘The team met or exceeded our going-in plans for sales, earnings, and cash in a difficult operating environment and despite significant cost headwinds,’ he added.
Basic earnings per share were $6.07, up 1% from $6.00 year-on-year, while diluted earnings per share were $5.90, up from $5.81.
Looking ahead, Procter expects net earnings per share growth for financial 2024 in the range of 6% to 9%, or $6.25 to $6.43. All-in sales growth is expected to be between 3% and 4% versus the year prior.
‘As we look forward to fiscal 2024, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity each in-line with our long-term growth algorithm, despite continued macroeconomic and geopolitical challenges,’ said Moeller.
‘We remain committed to our strategy a focus on daily use categories where performance drives brand choice, superiority (of product, package, communication, go-to-market execution and value), productivity, constructive disruption, and an agile and accountable organization structure and culture all in pursuit of sustainable, balanced growth and value creation.’
The firm declared a dividend for financial 2023 of $3.68, up 4% from $3.52 a year prior. It declared a dividend for the final quarter of $0.94, up 3% from $0.91 the previous year.
Procter & Gamble shares were up 1.6% in the New York pre-market at $154.51 each on Friday.
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