P&G Is the Latest Company to Hike Prices, Joining Coke, General Mills and Kimberly-Clark

P&G Brands, Procter and Gamble.
©Procter & Gamble

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.

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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.

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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.

Meanwhile, inflation has become a bigger concern on Wall Street, which worries that rising prices might convince central banks to hike interest rates.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte MagazineStreet & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, will be published in 2021 by Atmosphere Press.

P&G Is the Latest Company to Hike Prices, Joining Coke, General Mills and Kimberly-Clark
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