Procter & Gamble (P&G) has warned that rising raw material, energy and transportation costs will cut its fiscal 2027 profit by about $1.4 billion, up from its previous estimate of $1 billion, even as stronger consumer demand helped the company beat quarterly sales expectations.
The consumer goods manufacturer, whose brands include Tide detergent and Pantene shampoo, announced the revised outlook on Thursday, 22 October 2026, after reporting results for the first quarter of its financial year.
P&G’s net sales rose 4% to $23.28 billion in the quarter ended 30 September, exceeding analysts’ expectations of $22.80 billion. Core earnings reached $2 per share, beating the $1.88 forecast by analysts.
Overall sales volumes increased 2.4%, while prices rose by 0.4%, reflecting continued demand for products, particularly in its beauty and home-care businesses.
However, higher oil prices and freight charges have increased production and distribution expenses, putting pressure on profit margins. Chief Financial Officer Andre Schulten warned that commodity-related cost pressures were expected to intensify over the next two quarters.
Despite the challenges, P&G maintained its forecast for organic sales growth of 1% to 3% in fiscal 2027 and core earnings of approximately $7 per share.
See also MFM, First Bank Target African Women’s Basketball League Finals in Liberia https://vistaonenews.com/2026/10/22/mfm-first-bank-target-african-womens-basketball-league-finals-in-liberia/
The company’s results highlight the pressure facing global consumer goods manufacturers as rising energy and transportation costs threaten profitability, even when demand remains resilient.
P&G shares rose about 6% following the results, as investors responded to the stronger-than-expected quarterly performance.
Leave a comment