Manufacturer Pampers and Gillette Also Suffer from Price Increases

Care and cleaning company Procter & Gamble expects to grow less rapidly in the coming period than in previous quarters. At the same time, the company behind brands such as Gillette, Pampers and Ariel is struggling with rising prices for raw materials and transport, which affects its profits.


For the current broken financial year, which ends in June 2022, the American group is counting on revenue growth between 2 and 4 percent. However, that was still 6 percent in the past financial year if the effects of exchange rates, acquisitions, or parts’ sales are not included. At the same time, rising costs are taking a 1.9 billion dollar bite out of the results.

Procter & Gamble is far from the only consumer goods manufacturer to suffer from price increases. With the economy rapidly recovering from the corona crisis, there is a shortage of all kinds of materials as companies increase their production. In addition, transport costs have been rising for a long time due to a lack of sea containers.

Industry partner Unilever warned last week about the consequences of more expensive raw materials such as palm oil and soybean oil. These ensure that the hoped-for margins are not achieved this year.

It would make sense for consumer product sellers to increase in-store prices as well. For example, Procter & Gamble made its diapers and certain detergent brands more expensive, among other things. At the same time, however, concerns do not want to scare off customers too quickly.

Procter & Gamble still fully benefited from the increased demand for personal care products in the past financial year. Because sales of more expensive products in particular rose, profits increased by 10 percent to 14.4 billion dollars.

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