• by Sarah Mahoney , Staff Writer, Yesterday

Despite cost fallout from the Iran War and intensifying competition in many categories, Procter & Gamble Co. reported results that were better than Wall Street expected, with net sales for the third quarter of its fiscal year rising 7% to $21.2 billion. Net earnings rose 4% to $3.95 billion.

Beauty was the best performing division, up 7% in organic sales. Within that category, hair care climbed mid-single digits driven by volume increases and innovation-based pricing in North America and Europe. Organic sales of both personal care and skin care increased in the high single digits.

Fabric and home care and baby, feminine and family care both grew by 3%. The healthcare division saw sales rise 2%, while grooming eked out a 1% gain.

"We're increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year," said Shailesh Jejurikar, president and CEO, in the announcement. "We continue to believe the best path to sustainable, balanced growth is by strengthening execution of our integrated growth strategy."

In an earnings call, CFO Andre Schulten elaborated, offering examples of how large P&G brands, including Dawn dishwashing detergent and Mr. Clean, are leveraging new consumer and retail data insights.

"We are now scaling the integrated data platforms and the technologies that will enhance our teams' ability to mine this data for insights that lead to new product innovations, brand ideas, performance claims, and marketing campaigns across all relevant consumer platforms," Schulten said.

Two examples stand out from China, a strategically critical and competitive market for P&G. Skincare brand SK-II saw sales rise 18% in total, thanks to gains in travel retail. "When the consumer sees excitement and value—something they enjoy—they will go there and pay the premium," Schulten said.

Baby care also gained in the region, up 19%. "Best-in-class consumer understanding, product performance, and innovation in line with that, with a great communication model, gives us growth in one of the most difficult categories."

While the company reiterated its guidance for this fiscal year, expecting organic sales to rise between flat and 4%, it has not yet offered guidance for its next fiscal year. Executives addressed investor concerns about the impact of the Iran War on P&G's operations, given fluctuations in oil prices.

Noting that no company will be immune to rising costs, Schulten said: "Our business teams have been developing multiple contingency plans to mitigate potential cost and supply disruptions. Underpinning each of these options is a commitment to maintain support for our brands and superior value for our consumers. We remain willing to manage some short-term pressure on the bottom line to come out of this period with stronger brands and business momentum on the other side."