Procter & Gamble (P&G) significantly increased prices for its consumer products in the third quarter, helping to offset lower sales and the impact. A rising dollar. In particular, the US company, which makes Gillette razors, Pampers diapers and Oral-B toothbrushes, has raised its prices by 9% overall. But its volume sales fell 3%, suggesting consumers are beginning to be put off by rising prices.
The sharp strengthening of the greenback against other currencies in recent months has hurt P&G’s earnings by 6%. Total group turnover rose 1% to $20.6 billion, slightly above forecasts. Its net profit fell 4% to $3.9 billion. But excluding the stock and exceptional items, Wall Street’s benchmark earnings beat analysts’ expectations. Action rose 2.7% in the first trading session on the New York Stock Exchange.
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The group’s CEO John Moller described cost and operations management as “extremely difficult”. The situation is not expected to improve: for the group in its full 2023 accounting year, which ends at the end of June, P&G has about 1.3 billion dollars in unfavorable exchange rates, 2.4 billion in raw material cost increases, as well as 200 million in transportation cost increases. Accordingly, the company has reduced its forecast. It still expects an increase in its sales excluding currency effects and adjustments in the range of 3% to 5% in 2023, but now expects its total turnover to decline by 1% to 3%.