Procter & Gamble (PG) stock (NYSE:PG) has plummeted (-21%) this year. Shares reached pandemic highs of $146.92 in November 2020 as customers hoarded its items before dropping to post-pandemic lows of $121.54 in March 2021.
Ironically, post-pandemic feverish purchasing propelled PG stock (NYSE:PG) to a new high of $165.35 in January 2022. It has since fallen to a $122.18 low. The manufacturer of 65 well-known household brands such as Tide, Gain, Febreze, Mr. Clean, Oral-B, Crest, Bounty, and Pampers sells its goods in over 170 countries.
PG Stock: Inflation Control
Price increases and operational improvements assisted P&G in mitigating certain inflationary challenges and improving profit margins. Net sales were down (-6%) due to unfavorable foreign exchange. Organic sales in the Russian market fell by (-2%) to (-3%) percent. P&G, like its consumer staples counterparts Clorox (NYSE: CLX), Unilever (NYSE: UL), Church & Dwight (NYSE: CHD), and Colgate-Palmolive (NYSE: CL), confronts competition from generic and private label products that customers prefer. The Company intends to boost prices on feminine, household, and dental care goods once again. All ten product categories are seeing organic growth. The United States witnessed a 5% increase in sales, while China saw a 4% drop in organic sales owing to COVID limitations and lockdowns.
PG Stock: Despite Headwinds, Revenue Exceeds Expectations
P&G reported their fiscal first-quarter 2023 results for the quarter that ended October 2022 on October 19, 2022. The Company announced a profit of $1.57 per share, which was $0.02 more than the average analyst expectation of $1.55 per share. Revenues increased 1.3% year on year (YoY) to $20.61 billion, above analyst expectations of $20.37 billion. “These results allow us to retain our target estimates for fiscal year organic sales and EPS growth despite considerable sustained headwinds,” said P&G CEO Jon Moeller. We continue to be dedicated to our combined strategy of a focused product portfolio, quality, productivity, constructive disruption, and an agile and responsible organizational structure. These techniques have allowed us to establish and maintain a strong momentum. They continue to be the best solutions for navigating our near-term difficulties while delivering balanced growth and wealth creation.”
Lower Fiscal 2023 Prospects
PG stock (NYSE:PG) provided negative guidance for full-year 2023 EPS of $5.81 to $6.04, compared to the $5.83 average analyst expectation. Revenue is predicted to dip (-3%) to (-1%) or $77.8 billion to $79.4 billion below expert projections of $79.97 billion. P&G anticipates an adjusted free cash flow productivity of 90% with dividends of $9 billion and a repurchase of $6 billion to $8 billion.
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Author Okoro Chinedu 
