Reuters (Reuters) – Procter & Gamble Co beat quarterly sales estimates on Friday, helped by higher demand for its personal care products, although it warned that rising costs for basic supplies and freight transport would cut its profits by almost $ 2 billion this year.
Shares in the company, which makes Gillette, Oral-B and Pampers products, rose 0.8% to $ 140.59 in pre-market trading.
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The easing of restrictions imposed to curb the spread of COVID-19, along with vaccinations in the United States and parts of Europe, helped P&G register an 11% increase in sales in its beauty segment in the quarter, already that consumers returned to social events and spent more on personal care products.
“As we look forward to fiscal 2022, we want to continue growing in revenue and results… despite a challenging cost and operating environment,” said outgoing CEO David Taylor.
Taylor’s replacement, COO Jon Moeller, will now have to deal with rising commodity and transportation costs caused by pandemic-related disruptions, which led other industry giants like Unilever and Reckitt Benckiser Group to warn of cost pressures.
Procter & Gamble said it expects an after-tax impact of $ 1.9 billion from high commodity and freight costs this year, partially offset by exchange rate gains of about $ 100 million.
The company predicted that basic earnings per share for fiscal 2022 will rise between 3% and 6%, or about $ 5.82 to $ 6.00. Analysts had expected an annual profit of $ 5.90 per share, according to IBES data from Refinitiv.
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Procter & Gamble said its net sales increased 7% to $ 18.95 billion in the fourth quarter ended June 30, compared to estimates of $ 18.41 billion.
The company reported structural earnings of $ 1.13 per share, beating estimates of $ 1.08 per share.