Procter & Gamble will raise prices in September

The announcement, which came as P&G revealed its quarterly financial results, follows a similar move last month by rival Kimberly-Clark Corp.

P&G said organic sales grew 4% in the quarter ended March 31, with the biggest gains in the company’s beauty and weaving and home care units.

The results mark P & G’s slowest overall increase in organic sales since 2018, after a year in which the Covid-19 pandemic created strong demand for products such as cleaning supplies, paper towels and toilet paper.

“It’s a different situation, as countries around the world are in very different places until the pandemic comes out,” Chief of Operations Jon Moeller said in an interview. “There is very strong consumption at all levels.”

While sales are cooling for some products, Moeller said, demand is recovering for others, such as beauty products and supplies sold directly to companies reopening after widespread shutdowns.

Moeller said P&G aims to improve and add features to the products as the company raises prices so consumers can feel more and more. Price increases, which will take effect in September, will occur in baby products, adult diapers and female care brands and will be in the mid-to-high percentage rates, according to the company.

The last time large consumer product companies raised prices significantly due to material costs was in 2018, when rising pasta prices increased the cost of diapers, toilet paper and other products.

Kimberly-Clark, maker of Huggies diapers and Scott paper products, said her percentage of increases would occur between medium or high digits and would take effect in late June. They will apply to baby and infant bath tissue companies, adult care and Scott.

Several food manufacturers have also raised prices. Hormel food Corp.

said in February that it raised prices for its turkey products, such as Jennie-O milled turkey, in response to higher grain costs. JM Smucker Co.

he said he recently raised prices for Jif peanut butter and could do the same with pet snacks due to higher shipping costs and other inflationary pressures.

The Labor Department said last week that its consumer price index, which measures what consumers pay for everyday items, including groceries, clothing, recreational activities and vehicles, jumped 2.6%. the year closed in March, the biggest twelve-month increase since August 2018.

During the quarter, P&G’s net sales rose 5% to $ 18.1 billion, above the consensus forecast of € 18 billion for analysts surveyed by FactSet. Volume was flat for the first time in years, while price and blending rose 2%.

P&G posted a net profit of $ 3.272 billion, or $ 1.26 per share, compared to $ 2.922 billion or $ 1.12 per share, a year earlier. Analysts expected a net profit of $ 3.09 billion.

The company maintained its organic sales growth forecast of 5% to 6% for the year ended June 30th.

Write to Sharon Terlep to [email protected]