(Alliance News) - Procter & Gamble Co on Friday celebrated a strong finish to the year, as it delivered annual growth despite a difficult operating environment and "significant" cost headwinds.

For the year ended June 30, the Cincinnati, Ohio-based consumer goods firm reported net earnings of USD14.74 billion, down just marginally from USD14.79 billion a year prior.

Gross profit rose 3% to USD39.25 billion from USD38.03 billion, while operating income was up 2% to USD18.13 billion from USD17.81 billion. Earnings before income taxes were USD18.35 billion, up 2% from USD18.00 billion.

Net sales were USD82.01 billion, up 2% from USD80.19 billion the previous year.

This was in part thanks to organic sales, which increased 7%. Procter & Gamble attributed this growth to a 9% increase from higher pricing, as well as a 1% increase from favourable mix, partially offset by a 3% decrease in shipment volumes.

Chief Executive Officer Jon Moeller also noted "a very strong finish" to the fiscal year, with "top-line growth, bottom-line growth, and cash generation".

"The team met or exceeded our going-in plans for sales, earnings, and cash in a difficult operating environment and despite significant cost headwinds," he added.

Basic earnings per share were USD6.07, up 1% from USD6.00 year-on-year, while diluted earnings per share were USD5.90, up from USD5.81.

Looking ahead, Procter expects net earnings per share growth for financial 2024 in the range of 6% to 9%, or USD6.25 to USD6.43. All-in sales growth is expected to be between 3% and 4% versus the year prior.

"As we look forward to fiscal 2024, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity – each in-line with our long-term growth algorithm, despite continued macroeconomic and geopolitical challenges," said Moeller.

"We remain committed to our strategy – a focus on daily use categories where performance drives brand choice, superiority (of product, package, communication, go-to-market execution and value), productivity, constructive disruption, and an agile and accountable organization structure and culture – all in pursuit of sustainable, balanced growth and value creation."

The firm declared a dividend for financial 2023 of USD3.68, up 4% from USD3.52 a year prior. It declared a dividend for the final quarter of USD0.94, up 3% from USD0.91 the previous year.

Procter & Gamble shares were up 1.6% in the New York pre-market at USD154.51 each on Friday.

By Holly Beveridge, Alliance News reporter

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