Procter & Gamble expects a bite of almost 3 billion dollars from profit this broken financial year due to more expensive materials and higher transport costs.
The group behind Pampers diapers, Gillette razors and Ariel soap increased sales in the past quarter thanks to price increases. Profits also rose slightly.
As early as 2021, consumer goods manufacturers such as Procter & Gamble and Unilever had to contend with sharply increased raw material prices, forcing them to raise prices. The war between Russia and Ukraine has further fueled that inflation. For example, gas and oil have risen in price, making products made more expensive.
Looking ahead to the broken fiscal year, which runs through the end of June, Procter & Gamble now says it expects $2.5 billion in “headwinds” from commodity price increases. More expensive transport takes a bite of 400 million dollars from the profit. In addition, the company is suffering from a strong dollar, which means that turnover from other countries is lower.
Procter & Gamble’s third-quarter revenue rose 7 percent to $19.4 billion, ahead of analyst expectations. In all its divisions, this was partly due to price increases. Net profit rose 4 percent to $3.4 billion.
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