Procter & Gamble Faces Cost Headwinds but Posted Strong Results. Its Stock Is Up.

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Procter & Gamble said higher commodity prices and freight costs would measurement connected profits successful the adjacent fiscal year, arsenic the consumer-goods elephantine posted beardown results for the past 4th connected Friday, with income and net outpacing Wall Street’s expectations.

Shares successful P&G, a constituent of the Dow Jones Industrial Average, roseate adjacent 1.5% successful premarket trading. The banal is up 1.2% truthful acold successful 2021 and has climbed much than 6% successful the past 12 months.

The radical saw income of $18.9 cardinal successful the April to June period, which is the 4th fourth of its 2021 fiscal year, up 7% from the aforesaid play a twelvemonth agone and beating expert expectations of astir $18.4 billion. Diluted net per stock was $1.13, a 6% emergence from $1.07 successful the 2020 quarter, up of estimates of $1.08.

P&G said that its tegument and idiosyncratic attraction arsenic good arsenic oral attraction segments each notched double-digit income increases from a twelvemonth ago, successful portion owed to changes successful user behaviour arsenic the worst of the Covid-19 pandemic passed.

“We delivered different twelvemonth of beardown results with balanced apical and bottom-line maturation and beardown currency generation, exceeding each of our ingoing targets,” said David Taylor, P&G’s president and main executive. “As we look guardant to fiscal 2022, we expect to proceed to turn top-line and bottom-line and to present different twelvemonth of beardown currency instrumentality to shareholders contempt a challenging outgo and operating environment.”

Also read: Lysol Maker Reckitt Warns About Inflation. What It Means for P&G and PepsiCo.

The institution said that it expects income maturation of 2% to 4% successful the 2022 fiscal year, with diluted nett EPS maturation of 6% to 9%. The group’s existent outlook besides includes headwinds of astir $1.9 cardinal aft taxation from higher commodity prices and freight costs. These inflated costs, partially offset by affirmative overseas speech effects, volition measurement connected EPS to the tune of astir $0.70 per share, P&G said.

Producers have had to walk much wealth connected commodities and shipping successful caller months, which has travel successful tandem with rising inflation, and P&G’s outlook mirrors challenges faced by different consumer-goods groups similar Unilever and Reckitt Benckiser.

P&G volition big its net league call astatine 8:30 a.m. Eastern.

Write to Jack Denton astatine jack.denton@dowjones.com.

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