Proctor & Gamble is raising prices on a range of goods as higher commodity and freight costs are set to take a bite out of its profits.

The maker of Pampers diapers, Tide detergent and Crest toothpaste said Tuesday it has been raising prices on product lines including baby, family, home and fabric care. In the last few weeks, it has started telling retailers that it will boost prices on more categories including grooming, skin care and oral care.

“The degree and timing of these moves are very specific to the category, brand and sometimes the product form within a brand,” Chief Financial Officer Andre Schulten said during a call to discuss quarterly results. “This is not a one-size-fits-all approach.”

And though it's still early, the company has yet to see “notable changes” in consumer behavior in reaction to the higher prices, he said.

Schulten said the Cincinnati company now expects a commodity hit of $2.1 billion in fiscal 2022. That’s up from an estimated $1.8 billion in July.

P&G also sees higher transportation costs, reflecting in part a shortage of truck drivers and soaring diesel fuel costs. In July, the company estimated that would cost an extra $100 million this fiscal year. Tuesday, the consumer goods maker doubled that estimate to $200 million.

Combined, the $2.3 billion in higher costs will lower fiscal 2022 earnings by about 90 cents per share.

Last week the Labor Department reported that wholesale prices rose a record 8.6% in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010. The jump in inflation this year reflects higher prices for food and energy. Core inflation at the wholesale level, excluding volatile energy and food, was up 0.2% in September from August and was 6.8% higher over the past 12 months.

Meanwhile, inflation at the retail level rose 0.4% in September, government data show, with the consumer price index up 5.4% over the past 12 months, matching the fastest pace since 2008.

P&G maintained its annual guidance and doesn’t believe that inflation is here to stay, calling it a “temporary bottom line rough patch to grow through.”

"When opportunities allow, we will close a couple of price increases with new product innovations, adding value for consumers along the way," Schulten said.

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More