Procter & Gamble raises prices on many items as more raw materials and transportation will reduce their profits.
maker Pampers Diapers, Tide Cleanser and Crest Toothpaste On Tuesday, it said it had raised prices for its baby, family, home and textile product lines. In recent weeks, the company has begun telling retailers that it will raise prices for more categories, including personal care, skin care and oral hygiene.
“The degree and extent of these differences are very specific to the category, the brand and sometimes the form of the product within the brand,” Chief Financial Officer Andrei Schulten said during a conference call to review the quarterly results. “It’s not a one-size-fits-all.”
And while it’s still too early to do so, the company has yet to see “notable changes” in consumer behavior in the face of rising prices, he said.
Schulten noted that the Cincinnati-based company expects a $2.1 billion increase in raw materials during fiscal 2022, compared to an estimated $1.8 billion in July.
P&G also expects transportation expenses to rise, partly reflecting a lack of drivers and higher diesel costs.. In July, the company projected that it would spend an additional $100 million this fiscal year. On Tuesday, it raised that number to $200 million.
Combined, the $2.3 billion cost increase would cut fiscal year 2022 earnings by 90 cents per share.