Procter & Gamble beats sales estimates on higher prices
2022.07.29 14:34
FILE PHOTO: Gillette razors, a brand owned by Procter & Gamble, is seen for sale in a store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) -Procter & Gamble Co beat quarterly sales estimates on Friday, helped by higher prices of its detergents and homecare products.
Major consumer goods companies have so far seen little resistance to price hikes they have implemented in order to cushion the blow of surging transportation and commodity costs, with the products they make usually among the last to see a slow down in demand during economic downturns.
However, with inflation hitting 40-year highs some retailers have begun to pushback against companies raising prices, worried that they may not be able to clear overstocked shelves.
The Tide detergent maker said net sales rose 3% to $19.52 billion in the fourth quarter ended June 30, compared with analysts’ estimates of $19.41 billion, according to IBES data from Refinitiv.
However, the company forecast average fiscal 2023 earnings per share of $5.93, below analysts’ estimates of a $6.02, with the company blaming about $3.3 billion of headwinds from a stronger dollar and higher commodity and freight costs.
