P&G raises dividend for 67th consecutive year

For the third quarter, diluted net earnings per share increased three percent to $1.37, driven by an increase in net sales, an increase in operating margin and a reduction in shares outstanding. As a result, currency-neutral EPS increased 13 percent compared to the prior year. In total, the company paid out $3.6 billion in proceeds to shareholders through dividends of approximately $2.2 billion and common stock repurchases of $1.4 billion. The dividend increase marks the 67th consecutive year that P&G has increased its dividend and the 133rd consecutive year that P&G has paid a dividend since its founding in 1890.

The company operates in 180 countries

Procter & Gamble is focused on providing branded consumer packaged goods to consumers around the world. The company operates through five segments: Beauty; Care; Healthcare; Fabric & Home Care; and Baby, Women & Family Care. The Company sells its products in approximately 180 countries and territories primarily through wholesalers, grocery stores, membership club stores, drugstores, department stores, distributors, children's stores, specialty beauty stores, e-tailers and pharmacies.

P&G resists high cost pressures

P&G said its current fiscal outlook for 2023 includes so-called headwinds of approximately $1.3 billion after-tax due to unfavorable exchange rates and $2.2 billion due to higher commodity and material costs. Together, these items represent an after-tax cost increase of $3.5 billion, or approximately $1.40 per share, compared to fiscal 2022.

Jon Moeller, Chairman, President and CEO, commented on the company's results: "In the third quarter of fiscal year 2023, we delivered strong results in what continues to be a very challenging cost and operating environment." He also stated that despite the challenges, the Company was able to maintain its Earnings Per Share ̶ EPS̶ growth targets despite continued pressure on production costs and increases in foreign exchange rates.

Conclusion

The company's Q3 results can be assessed as solid. P&G saw an increase in both net and organic sales. The net profit ratio also increased from the previous period. Diluted net earnings per share were $1.37, an increase of three percent over the prior year. Thus, Procter & Gamble has been true to its word to its shareholders for 133 years and has done something almost impossible: it has increased its dividend for the 67th consecutive year.

Evolution of the share price of & Gamble over the last 5 years. Source.

----

Adam Austera, Principal Analyst at Ozios

* Past performance is no guarantee of future results

[1]  Diluted earnings measures a company's earnings per share if all convertible securities have been converted into ordinary shares.