Dear External Business Partners:
P&G released its second quarter earnings on Tuesday, January 23, 2024. During the October through December quarter, P&G reported net sales of $21.4 billion, an increase of three percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased four percent. Diluted net earnings per share were $1.40, a decrease of 12% versus prior year primarily due to a non-cash impairment of the carrying value of the Gillette intangible asset. Core net earnings per share were $1.84, an increase of 16% versus prior year. Operating cash flow was $5.1 billion, and net earnings were $3.5 billion for the quarter. More details are provided in the chart below and in the press release here.
The volatile consumer and macro dynamics we are experiencing will continue therefore our best path forward is doubling down on the strategy that has enabled strong results. A focused portfolio of products in daily use categories whereby our performance drives brand choice. Irresistible superiority across product, package, brand communication, retail execution and value – holistically defined – to grow markets and our share in them. Accelerating productivity in all areas of our operations and a willingness to adapt constructive disruption of ourselves and our industry. I am counting on all of you, our External Business Partners, to continue to partner with us to adapt and co-create new trends, technologies and capabilities that will further shape the future of our industries in service to our consumers, customers, society, and shareholder.
I also take this opportunity to share my excitement about the next annual Supplier Citizenship Summit on February 28, 2024. I invite you to join us to learn about P&G’s journey From Intention to Action for Impact. This year, I will be joined by P&G leaders including Monica Turner, our North American Market Operations President, and Alex Keith, Sector CEO for Beauty and Executive Sponsor of Sustainability who will share their thoughts and experience in driving action within the business they lead. I am inspired by the progress we’ve made together, and I look forward to having our entire Supply Ecosystem driving actions that turn into tangible impact throughout the entire value chain. I encourage all of you to participate – follow this link to join the Suppler Citizenship Summit on February 28, 8-10am EST.
On that celebration point, I am also delighted to announce our 2023 Excellence Award winners. These group of selected partners consistently performed at high levels as determined by broad-based quantitative and qualitative evaluations from P&G employees throughout key metrics of value --80, out of approximately 60,000 external business partners have been bestowed an Excellence Award this year. Congratulations to the 2023 Excellence Award Winners! We will share the final list of winners in the coming days.
Following the Excellence Award selection, we will recognize and honor our External Business Partners that have gone above-and-beyond in delivering value. This exclusive group of partners will be honored at the Partner of the Year and Impact Award celebration being held in Cincinnati on Thursday, April 25, 2024. I look forward to sharing more information about those award winners in April.
To close, I thank you for everything you’ve done to enable P&G delivering another strong quarter. We could not have done it without your commitment and partnership.
Chief Purchasing Officer
*See P&G’s investor website (www.pginvestor.com) for P&G's full Q2 earnings release issued January 23, 2024, the associated webcast presentation, definitions of non-GAAP measures and reconciliation to the most closely related GAAP measure, as well as cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.