Procter & Gamble beat Wall Street expectations on the highest and bottom lines, but profits were bolstered partly by price hikes and it still isn’t seeing the recovery in travel retail that it had hoped for.

The buyer goods giant reported third-quarter fiscal-year 2023 net sales of $20.1 billion, a rise of 4 percent versus the prior 12 months. Analysts polled by Factset forecast $19.3 billion.

Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, rose 7 percent.

Diluted net earnings per share were $1.37, a rise of three percent versus the prior 12 months, beating Wall Street expectations for $1.32. Net earnings were $3.4 billion for the quarter.

P&G raised its guidance for fiscal 2023 all-in sales to grow roughly 1 percent versus the prior fiscal 12 months, from a previous guidance range of down 1 percent to in-line. It maintained its outlook for diluted net EPS growth within the range of in-line to up 4 percent versus fiscal 2022 EPS of $5.81. The corporate added that it expects EPS results toward the lower end of the fiscal 12 months guidance range.

Nevertheless, of the economic backdrop, chief financial officer Andre Schulten said: “We proceed to face highly volatile consumer and macro dynamics. We also proceed to see high year-over-year input costs, inflation within the upstream supply chain and in our own operations, headwinds from foreign exchange, geopolitical issues and historically high inflation impacting consumer budgets.”

Beauty net sales rose 3 percent compared with a 12 months ago, to almost $3.5 billion. Beauty segment organic sales increased 7 percent versus a 12 months ago. Hair care organic sales increased by double digits driven by increased pricing. Skin and private care organic sales grew within the low single digits as higher pricing and innovation-based volume growth were partially offset by lower sales of SK-II within the travel retail channel.

“We’re not yet seeing any return of Chinese consumers to travel retail. That could be a significant negative for us within the SK-II business specifically,” Schulten told analysts on a call to debate earnings.

Grooming segment organic sales increased 7 percent versus a 12 months ago as higher pricing was partially offset by negative volume and blend impacts from market contraction of appliances. Particularly, it highlighted the brand new Gillette Labs exfoliating razor, female and male intimate grooming innovations and cardboard packaging upgrades as driving strong growth.

“We delivered strong ends in the third quarter of fiscal-year 2023 in what continues to be a really difficult cost and operating environment,” concluded Jon Moeller, chairman of the board, president and chief executive officer.