Procter & Gamble reported fiscal first-quarter earnings and sales that beat analysts' estimates but the consumer goods giant warned that fiscal-year earnings would be at the low end of the company's forecast. P&G blamed the stronger dollar and rising inflation.

The stock was rising 2.4%.

The company posted earnings in the period of $1.57 a share on sales of $20.6 billion, an increase of 1% from a year earlier. Organic sales in the period rose 7%, driven by a 9% increase from higher pricing and a 1% increase from positive product mix. Shipment volumes declined 3% in the third quarter.

Gross profit fell to 47.4% from 49%.

Analysts surveyed by FactSet expected Procter & Gamble (ticker: PG), the maker of Tide laundry detergent, Pampers diapers and Crest toothpaste, to report fiscal first-quarter earnings of $1.54 a share on sales of $20.28 billion. A year earlier, the company posted a profit of $1.61 a share on sales of $20.34 billion.

Procter & Gamble said it expects fiscal 2023 sales to fall 1% to 3% vs. prior expectations of flat to up 2%. The company said in a statement that foreign exchange "is now expected to be a six-percentage point headwind to all-in sales growth for the fiscal year."

P&G said fiscal 2023 headwinds include $1.3 billion "due to unfavorable foreign exchange rates, $2.4 billion due to higher commodity and materials costs, and $200 million from higher freight costs."

Shipment volumes declined 3%. Third-quarter gross profit in the third quarter fell to 47.4% from 49%.