Procter & Gamble (NYSE: PG) disclosed positive quarterly earnings and revenue on Friday amid the rise in consumption for premium health and personal care products. Nevertheless, the company warned that rising commodity costs would impact its earnings this year. P&G shares rose 1% during premarket trading amid the news.
The multinational consumer goods corporation reported earnings of USD1.13 per share, compared to the expected USD1.08 a share. Revenue totaled USD18.95 Billion, higher than analysts anticipated USD18.41 Billion.
“As we look forward to fiscal 2022, we expect to continue to grow top-line and bottom-line … despite a challenging cost and operating environment,” outgoing Chief Executive Officer David Taylor said.
Amid the distribution of Covid-19 vaccines and reduced restrictions within the United States as well as parts of Europe, the company experienced an 11% increase in sales. P&G reported its best growth within its beauty and health-care divisions, as people prepare to return to social settings.
Due to higher commodity costs, the company is set to increase prices on select items during the fall. Similarly, rivals such as Huggies, are also on track to raise their prices on several products.
According to Chief Financial Officer Andre Schulten, approximately 75% of P&G’s merchandise is considered superior or premium, thus why consumers are already willing to pay more in the case of a price increase.
“We believe that where we need to take pricing, we’ll be able to take pricing,” he said.
Shares were up under 1% year to date and the company has a current market cap of USD341.4 Billion.