Procter & Gamble raises FY23 sales growth outlook

P&G raised its guidance for fiscal 2023 all-in sales to a range of down one percent to in-line versus the prior fiscal year from a prior range of down three percent to down one percent. FY23 revenue consensus $80.27B. The Company also raised its outlook for organic sales growth to a range of four to five percent versus the prior fiscal year from a prior growth range of three to five percent. Foreign exchange is now expected to be a five percentage point headwind to all-in sales growth for the fiscal year. P&G maintained its outlook for fiscal 2023 diluted net earnings per share growth in the range of in-line to up four percent versus fiscal 2022 EPS of $5.81. FY23 EPS consensus $5.85. The Company added that given continued significant cost headwinds from commodity and materials costs and foreign exchange impacts, it continues to expect EPS results to be towards the lower end of the fiscal year guidance range. P&G said its current fiscal 2023 outlook includes headwinds of approximately $1.2 billion after-tax due to unfavorable foreign exchange rates, $2.3 billion due to higher commodity and materials costs, and $200 million from higher freight costs. Combined, these items are a $3.7 billion after-tax headwind, or approximately $1.50 per share, to fiscal 2023 earnings versus fiscal 2022, or a headwind of approximately 26 points to EPS growth. The $3.7 billion headwind is a modest sequential improvement versus guidance provided in October, due to both commodities and foreign exchange.