Procter & Gamble Company Q4 Profit Tops Estimates, Organic Sales Up 8%

(RTTNews) - The Procter & Gamble Company (PG) said its fourth quarter provided a very strong finish to fiscal 2023 with top-line growth, bottom-line growth, and cash generation. Looking forward to fiscal 2024, the company expects to deliver strong organic sales growth, EPS growth and free cash flow productivity - each in-line with its long-term growth algorithm.

Fourth quarter net earnings was $3.38 billion, an increase of 11% from prior year. Net earnings per share was $1.37, an increase of 13% from prior year. This was driven by an increase in net sales, an increase in operating margin and a reduction in shares outstanding. Currency-neutral net EPS increased 22% from prior year. Core EPS was $1.37 compared to $1.21, previous year. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.32, for the quarter. Analysts' estimates typically exclude special items.

Fourth quarter net sales were $20.6 billion, an increase of five percent versus the prior year. Organic sales increased eight percent, for the quarter. The company said its organic sales growth was due to a seven percent increase from higher pricing and a two percent increase from favorable mix, partially offset by a one percent decrease in shipment volumes. Analysts on average had estimated $19.98 billion in revenue.

P&G expects fiscal year 2024 all-in sales growth in the range of three to four percent versus the prior year. Foreign exchange is expected to be a headwind of approximately one percentage point to all-in sales growth. The company expects organic sales growth in the range of four to five percent.

P&G expects fiscal 2024 net earnings per share growth in the range of six to nine percent, which equates to a range of $6.25 to $6.43 per share, with a mid-point estimate of $6.34, an increase of 7.5%.

P&G is targeting adjusted free cash flow productivity of 90% and expects to pay more than $9 billion in dividends and to repurchase $5 to $6 billion of common shares in fiscal 2024.

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