Procter & Gamble Report Increased Revenue But Profits Continue To Decline
Oct 19, 2021 By MarketDepth
Procter & Gamble (NYSE: PG) reported better-than expected fiscal first-quarter earnings and revenue Tuesday. However, rising costs impacted the company’s profits. Shares tumbled 2.3% during premarket trading upon the news.
“We do not anticipate any easing of costs. We continue to see increases week after week, though at a slower pace.”P&G Finance Chief Andre Schulten
Ultimately, the American multinational corporation revealed it would need to increase the prices of several beauty, oral care and grooming items such as razors. The company had also previously announced price increases to other staples such as diapers and toilet paper. Furthermore, P&G raised its forecast for commodity and freight costs until the end of the fiscal year, as it believes inflation will continue to surge.
“As this pricing reaches store shelves we’ll be closely monitoring consumption trends. While it’s still early in the pricing cycle, we haven’t seen notable changes in consumer behavior.”P&G Finance Chief Andre Shulten
The maker of Tide detergent and Gillette razors reported earnings of USD1.61 per share, compared to the expected USD1.59 a share. Revenue amounted to USD20.34 Billion, higher than analysts anticipated USD19.91 Billion.
Nevertheless, Schulten said that P&G would be boosting its productivity programs within the fiscal year and plans to implement innovation as a means to improve value as its prices rise.