P&G Is the Latest Company to Hike Prices, Joining Coke, General Mills and Kimberly-Clark
You can add Procter & Gamble to the list of consumer product companies that plan to raise prices in the wake of rising commodity and freight costs. After beating quarterly sales and earnings estimates on Tuesday, P&G said it will raise prices on brands like Pampers diapers and Tampax tampons, with consumers likely to feel the pinch sometime in the fall.
Reuters reported on Wednesday that the price hikes will likely be in the mid-single digit percentage range. Don’t be surprised if P&G’s main retail customers — including Walmart, Target and Costco — pass the price hikes on to shoppers.
P&G offered clarity on the price increases in its fiscal third-quarter earnings report. As reported by CNBC, the company posted earnings of $1.26 per share for the quarter, which ended on March 31. That was up from $1.12 the previous year. Analysts polled by Refinitiv expected earnings of $1.19 per share. Net sales climbed 5% to $18.1 billion, topping consensus estimates of $17.9 billion.
Earnings might have been higher had P&G not faced profit-margin pressure caused by higher commodity and freight costs. That has become a problem for a growing number of consumer product companies in the U.S. and elsewhere.
Coca-Cola also said it will raise prices on its drinks to offset higher commodity costs. Other companies that have announced plans to issue price hikes include Kimberly-Clark, maker of Huggies diapers and Scott paper products, and Cheerios maker General Mills.
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