Consumers can expect to pay a bit more for their favorite Procter & Gamble products in the next year, after officials said they expect to levy price increases across the board to overcome $1.9 billion in anticipated higher commodity costs and freight increases.
As part of the company’s fiscal 2021 earnings review, company leaders looked ahead to fiscal 2022, which started on July 1, saying they anticipate sales growth of 2 to 4 percent overall compared to fiscal 2021.
This isn’t the first time Procter & Gamble officials have been blunt about having to pass on increasing costs to customers. P&G Chief Financial Officer Andre Schulten told analysts in April that rising commodity costs will see prices going up, especially for categories such as diapers and feminine hygiene.
“We will offset a portion of this impact with price increases,” Schulten said. “Our baby care, feminine care and adult incontinence businesses have announced price increases in the United States that would go into effect in mid-September. The exact timing and amount of increases vary by brand and sub-brand in the range of mid to high single-digits.”
For fiscal 2021, P&G reported net sales of $76.1 billion, up 7 percent from a year earlier. Organic sales were up 6 percent in fiscal 2021. Net sales in the fourth quarter were $18.9 billion, up 7 percent from the prior year. That growth was led by the healthcare segment (up 14 percent) and skin care and personal care sales (up double digits).
“We delivered another year of strong results with balanced top- and bottom-line growth and strong cash generation, exceeding each of our in-going targets,” said David Taylor, chairman, president and CEO. “We built strong momentum prior to the pandemic and have strengthened our position further.
“As we look forward to fiscal 2022, we expect to continue to grow top-line and bottom-line and to deliver another year of strong cash return to shareholders despite a challenging cost and operating environment,” he added.