Procter & Gamble looks back on a “very strong” financial year, despite severe headwinds. Already more than 10 % of sales come from e-commerce.
Targets achieved
Procter & Gamble has already closed its financial year 2022, and did so with great satisfaction. The net sales of the group behind Always, Dreft and Pampers amounted to 80.2 billion dollars (just over 80 billion euros), compared to 76.1 billion dollars a year earlier. Of course, inflation distorts these figures somewhat. Operating profit came in at 17.8 billion dollars, slightly lower than the 18 billion of last year.
In an “incredibly difficult operating environment“, it was “another very strong year”, P&G stated in its annual report. The report mentions strong sales growth across all categories and regions, and says core earnings per share were up 3 % while organic sales growth was even 7 %. Compared to the pre-pandemic financial year 2020, sales were 19 % higher. E-commerce sales increased by 11 % and already represent 14 % of total company sales.
More production capacity
However, the new year begins under the threat of “consumers facing inflation levels not seen in the last 40 years.” The best answer according to the FMCG manufacturer? To focus even more strongly on four strategic areas: supply, sustainability, digitisation and employee value.
“The capacity investments we made prior to COVID-19 to improve our manufacturing and distribution networks in the US and Europe have helped us get through the past few years with relatively few problems,” P&G believes, but another round of investments in manufacturing capacity and a wider variety of suppliers is already underway.
More AI
In the area of sustainability, the group is trying to link a better user experience with more sustainable packaging and product innovations. The motto: better for the consumer, better for our planet. The same goes for employees, because “to create superior value for our employees, there has to be something in it for everyone”. Through equality and diversity, P&G hopes to continue to attract, retain and develop the best talent.
Finally, more digitisation of production lines, more artificial intelligence and more blockchain technology are “not an end in themselves”, but “tools we can use to make consumers and customers happy.”
