P&G Beats Revenue Estimates, Flags Bigger Hit to Annual Profit
The maker of Pantene shampoo was helped by strong personal care demand, but expects higher commodity costs to reduce profit by about $1.4 billion this year.
Procter & Gamble reported first-quarter net sales of US$23.28 billion, surpassing analysts' estimate of US$22.80 billion. The consumer goods giant warned that higher commodity-related costs, such as raw materials, energy, and transportation, will reduce fiscal 2027 profit by about US$1.4 billion. Core operating margin fell 80 basis points in the quarter ended September 30th, despite 250 basis points of productivity savings aimed at improving efficiency.
The rise in fuel prices has increased transportation and freight costs for packaged goods manufacturers, while a shortage of truck drivers has further exacerbated the issue. P&G emphasized its investment in product innovation and supplier negotiations to mitigate the impact of these costs.
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