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Tags: Financial Markets | Infrastructure | Money | P&G | consumer goods prices | inflation | supply chain disruption

P&G to Hike Prices Due to Materials, Transportation Costs

P&G
(AP)

By    |   Tuesday, 19 October 2021 08:58 AM

Procter & Gamble (P&G) is raising prices on more consumer staples, as transportation and raw materials costs have gone up even more than P&G had expected, the Wall Street Journal reports.

P&G now expects to spend $2.1 billion more on transportation and raw materials for the discal year ending June 2022, a 10.5% increase from the $1.9 billion increase the consumer goods giant had projected, WSJ reports. The increases could have been higher, were it not for a rise in consumer demand for its products, the conumser goods giant says.

P&G items that will see prices increases include beauty, oral care and grooming goods. Earlier this year, P&G increased prices on such staples as diapers and toilet paper.

The Journal says inflation is at its highest level in a decade, put to the test by COVID-19-related labor and materials shortages. "We do not expect any easing of costs," P&G Finance Chief Andre Schulten told the WSJ. "We continue to see increases week after week, though at a slower pace."

P&G just announced its quarterlyl earnings per share, which dipped downwards by 1% to $1.61. During the quarter, P&G net sales increased 5% to $20.3 billion, beating the FactSet forecast of $19.8 billion.

To counter strains on the global supply chain and appear as if it is seamlessly contnuing to deliver goods to American consumers, Schulten says P&G has been using alternative shipping routes, reformulating products and, in some cases, rationing deliveries to retailers to avoid stockpiling.

On the bright side, P&G says consumers are buying record amounts of such pandemic-related goods as cleaners, paper towerls and toilet paper -- even with the price increases. Some of the most popular items are respiratory related.









 


 

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Economy
Procter & Gamble (P&G) is raising prices on more consumer staples, as transportation and raw materials costs have gone up even more than P&G had expected, the Wall Street Journal reports.
P&G, consumer goods prices, inflation, supply chain disruption, post-pandemic recovery
283
2021-58-19
Tuesday, 19 October 2021 08:58 AM
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