By Scott Kanowsky
Investing.com -- Shares in Procter & Gamble Company (NYSE:PG) are higher in premarket trading on Friday after the U.S. consumer goods firm raised its annual sales forecast as price mark-ups helped offset slipping volumes and cost pressures in the third quarter.
The Cincinnati-based company said it now expects all-in sales to increase by approximately 1% in its current fiscal year, up from a previous guidance range of -1% to 0%. On an organic basis, sales are seen growing by about 6% year-on-year, an improvement from the group's prior projection of 4% to 5%.
P&G also maintained its outlook for yearly diluted net earnings per share growth of between 0% to 4%. It added that it estimates that the EPS results will likely come in toward the lower end of that band.
The updated guidance comes as P&G reported third-quarter net sales of $20.1 billion, a 4% uptick compared to the previous year. The figure, which beat estimates of $19.34 billion, stemmed from a rise in prices that counterbalanced a 3% decrease in shipment volumes and unfavorable foreign exchange effects.
Net sales in the January to March timeframe at each division of P&G, which is behind well-known brands like Pampers diapers and Tide laundry products, were all above Bloomberg consensus forecasts as well.
“We delivered strong results in the third quarter of fiscal year 2023 in what continues to be a very difficult cost and operating environment,” said chairman and chief executive officer Jon Moeller in a statement.