Consumer Goods Giant P&G Reports Solid Earnings on Higher Pricings
Procter & Gamble reported solid earnings Friday, on increased sales driven by higher prices on its consumer products as it described persisting cost pressures on raw materials.
The company, which makes Bounty paper towels and Tide detergent, pointed to a "very difficult cost and operating environment" as it reported slightly higher profits in its fiscal third quarter.
Its profits rose 1% to $3.4 billion, on a 4% increase in revenues to $20.1 billion.
While there was a fall in sales volumes, this was offset by a 10% surge in product pricing -- boosting sales gains.
Costs have eased for some good like resin-based inputs, though other goods such as ammonia have become more expensive, said Chief Financial Officer Andre Schulten.
"There is no broad-based relief in terms of input costs," Schulten said on a conference call with journalists.
P&G took its latest round of price hikes in the first quarter in the United States and Europe, Schulten said.
"If the market environment remains where it is, I would expect the majority of the industry-wide pricing having been executed," he said. "But again, it entirely depends on where the markets are going."
While P&G maintained its profit forecast, it lifted its full-year sales forecast to 1% growth. Previously, it expected sales to be flat or to decline up to 1%.
P&G shares rose 2.7% in pre-market trading following the results, which were better than expected.
Copyright 2023, Agence France-Presse
