P&G beats estimates and raises its sales outlook, but warns of a bigger commodity-cost hit
The Tide maker now expects higher raw material, energy and freight costs to cut about $1.4 billion from annual profit.
Procter & Gamble reported fiscal first-quarter adjusted earnings of $2.00 a share on revenue of $23.3 billion, up 4% from a year earlier, both above analyst estimates. Volumes rose 2.4%, led by laundry and home-care products such as Tide and Febreze, and shares rose about 5% in morning trading.
The company said higher raw material, energy and freight costs will now reduce fiscal 2027 profit by about $1.4 billion, up from a previous estimate of $1 billion, with pressure expected to increase over the next two quarters. U.S. retail diesel prices hit a record $6 a gallon in September and remain elevated. P&G raised its all-in sales growth outlook to 2% to 4% from 1% to 3%, reflecting its acquisition of the supplements brand Thorne, and kept its core earnings forecast of roughly $7 a share.
Finance chief Andre Schulten described a split economy: higher-income shoppers still trading up to premium products while lower-income households stretch tight budgets. Rising fuel and freight costs are squeezing companies across industries as oil stays high; see our oil story and today's American Airlines story.
