P&G profits up on strong consumer demand, higher pricing
Jan 20, 2022 - 10:28 AM
NEW YORK — Procter & Gamble raised its full-year forecast Wednesday as robust consumer demand enabled the company to notch higher sales even as it increased prices on consumer goods.
The maker of Tide detergent and Bounty paper towels, P&G saw a six percent jump in net sales in the quarter, with half of the increase coming from volume and half from higher prices taken to offset increased commodity costs.
“We are taking pricing generally,” said P&G Chief Financial Officer Andre Schulten on a conference call with reporters, adding that “we’ve seen a good pass through of pricing” with retailers.
P&G highlighted strength in several premium items, such as teeth whitening goods and higher-priced grooming items.
A “more intense” flu season has increased demand for products to treat cold and cough symptoms, while cleaning supplies have continued to sell well during the pandemic, P&G said.
Net income for the quarter was up 10 percent at $4.2 billion on a six percent increase in revenues to $21 billion.
“We delivered very strong top-line growth and made sequential progress on earnings in the face of significant cost headwinds,” said Chief Executive Jon Moeller.
“These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners.”
Shares rose 0.8 percent to $158.00 in pre-market trading.