Care and cleaning company Procter & Gamble (P&G) made less profit in the past quarter. The American company behind Gillette, Pampers and Ariel had to pay more for raw materials, and freight costs also increased. The increased sales could not compensate for that.
Procter & Gamble is not the only consumer goods manufacturer to suffer from price increases. Now that the economy is rapidly recovering from the corona crisis, there is a shortage of all kinds of materials. In addition, energy prices have also risen sharply. Furthermore, transport costs have been growing for a long time due to a lack of sea containers and congestion in ports. Industry partner Unilever will publish quarterly figures on Thursday.
P&G expects rising costs to take a bite of $2.3 billion (almost 2 billion euros) from its fiscal year results. In the previous figure update, the company estimated that amount at 1.9 billion dollars.
In the first quarter of its broken fiscal year, which ended on September 30, Procter & Gamble posted revenue of $20.3 billion. That is an increase of 5 percent compared to the same period last year. However, net profit fell 4 percent to $4.1 billion in the third quarter.