Profit fell despite price increases, more price increases coming to a shelf near you. ‘We do not anticipate any easing of costs.’
By Wolf Richter | 19 October 2021
WOLF STREET — Procter & Gamble [PG], which makes a broad range of consumer and health-care products, released its quarterly earnings today. Let me give you the short form: Sales up some, costs up a whole bunch, profits down.
The company said it would implement more price increases to deal with rising costs. In its outlook, it upped the hit to earnings per share from surging commodities costs and transportation woes.
CFO Andre Schulten explained how the company had to jump through hoops, trying to keep the shelves stocked, including by limiting how much some retailers can buy to prevent hoarding. He complained about driver shortages. “We do not anticipate any easing of costs,” he said.
In April, P&G announced the first batch of price increases “in the range of mid to high single-digits,” on baby care, feminine care, and adult incontinence products, to respond to surging commodity costs and transportation costs. Later, it announced price increases on its family care, home care, and fabric care products. Over the past few weeks, it announced to US retailers price increases on its grooming, skin care, and oral care products. It has been a flow of price increases. […]