Procter & Gamble Raises Prices As Costs Rise
Company Says It Will Raise Prices On Some Products In North American To Offset Inflation
Procter & Gamble Co. said on Thursday it would raise prices on some products in North America to offset rising costs for commodities, transportation and labor.
The consumer goods giant said it expects to raise prices in the mid-single digits across various categories, including fabric care, home care and baby care, starting in September.
The company said the price increases are necessary to offset "significant" cost inflation, which it has been experiencing for several quarters.
Rising Costs Squeeze Margins
Procter & Gamble is not the only company raising prices to cope with rising costs.
In recent months, a number of other consumer goods companies have announced price increases, including Unilever, Nestle and Kimberly-Clark.
The rising costs are squeezing profit margins for these companies, as they are unable to fully pass on the higher costs to consumers.
Consumers May Cut Back
The price increases may lead to consumers cutting back on their purchases of Procter & Gamble products.
The company said it is aware of this risk, and is taking steps to mitigate it by offering promotions and discounts, and by investing in new products and packaging.
Procter & Gamble Stock Price
Shares of Procter & Gamble were down slightly in premarket trading on Thursday, following the announcement of the price increases.
The stock has been under pressure in recent months, as investors have grown concerned about the impact of rising costs on the company's profitability.
Company Outlook
Despite the challenges, Procter & Gamble said it remains confident in its long-term growth prospects.
The company said it expects to continue to grow its sales and earnings in the years to come, by investing in new products and marketing, and by expanding into new markets.
Procter & Gamble Company (PG-N) Quote - Press Release
Procter & Gamble's full press release on the price increases can be found here: https://www.pg.com/news/press-release/2022/08/18/procter-gamble-announces-price-increases-in-north-america
