Higher prices, inflation not impacting performance
By Terry Troy
Despite rising concerns on inflation and fear of an impending economic slowdown, Procter & Gamble (P&G) is doing quite well in our post-COVID economy. This month company reported an increase in sales for its third quarter fiscal year 2022. Net sales were $19.4 billion, an increase of 7% versus the same quarter a year prior. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 10%. Diluted net earnings per share were $1.33, an increase of six percent versus prior year EPS (earnings per share).
“We delivered another quarter with strong sales growth and made sequential earnings growth progress despite significant and increasing cost headwinds,” said Jon Moeller, president and Chief Executive Officer. “These results enable us to raise our top-line growth outlook for the fiscal year and to maintain our EPS guidance range. Our focus remains on the strategies of superiority, productivity, constructive disruption and continually improving P&G’s organization and culture. These strategies have enabled us to build and sustain strong momentum. They remain the right strategies to manage through the near-term cost and operational challenges we’re facing and to deliver long-term balanced growth and value creation.”
Earlier this month, P&G announced that David Taylor, executive chairman was retiring and that Moeller would assume that role in addition to his duties as president and CEO of the company.
“I want to recognize and thank David for his leadership of P&G over the last seven years as well as for his 40-plus years of service to the company,” said Moeller, in a prepared statement. “We have much to thank him for. Among other things, David committed P&G to achieve balanced top and bottom-line growth, completed the restructuring of our portfolio, and led our most important organization change in decades. We are well-positioned to continue to serve consumers around the world with noticeably superior offerings that improve their lives.”
In addition to Moeller’s appointment, the Board of Directors reappointed Joseph Jimenez as Lead Director of the Board.
Taylor served as CEO from 2015 to 2021. As Executive Chairman, Taylor led the Board of Directors and provided advice and counsel to the CEO and P&G’s leadership on company decisions.
Moeller joined P&G in 1988. Prior to becoming CEO in 2021, he had been an integral part of P&G’s leadership team for well over two decades. Moeller was P&G’s Chief Operating Officer, with profit/loss responsibility for P&G’s Enterprise Markets (Latin America, India, Middle East, Africa, Southeast Asia and Eastern Europe). He also led the company’s Investor Relations, Information Technology, Global Business Services, Sales, Market Operations, Purchasing, Manufacturing, and Distribution efforts. Before COO, he held the role of P&G’s Chief Financial Officer for more than 12 years.
In other related Ohio news, P&G has announced plans for a $501 million investment and the addition of 135 new jobs at its facility in Allen County.
The Procter & Gamble Company is expected to add a new product line while expanding its manufacturing and warehousing space at its Lima plant in order to meet the growing demand of its laundry business.
Procter & Gamble began operations in Allen County over 50 years ago and has expanded multiple times. It currently has 749 full-time employees and about 600 contract employees at the local operation. Its headquarters is located in Cincinnati. The company has 11,000 employees in Ohio.
Work on installing the new line and expanding the facility is expected to begin in July, with expected completion in 2026.