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July 30 (Reuters) – Procter & Gamble Co topped quarterly sales estimates on Friday, helped by higher demand for its skin care and health products, but warned that rising commodity costs and freight would cut profits by nearly $ 2 billion this year. .
Shares of the company, which makes Gillette, Oral-B and Pampers products, rose 0.8% to $ 140.59 in pre-market trading.
The loosening of COVID-19 restrictions helped by vaccination in the United States and parts of Europe helped Procter & Gamble to post an 11% increase in sales in its beauty segment in the quarter under review, while consumers returning to social events spent more on personal care. some products.
“As we look forward to fiscal 2022, we expect to continue to grow our revenue and bottom line… despite a challenging cost and operating environment,” said outgoing CEO David Taylor.
Taylor’s replacement, COO Jon Moeller, will now have to deal with soaring commodity and transportation costs caused by the pandemic disruptions, which have driven other consumer goods giants , including Unilever and Reckitt Benckiser Group, to warn of cost pressures.
Procter & Gamble said it expects an after-tax impact of $ 1.9 billion due to higher freight and freight costs this year, partially offset by foreign exchange benefits of around $ 100 million.
The company expects basic earnings per share for fiscal 2022 to increase between 3% and 6%, or approximately $ 5.82 to $ 6.00. Analysts had expected annual earnings of $ 5.90 per share, according to IBES data from Refinitiv.
Procter & Gamble said net sales rose 7% to $ 18.95 billion in the fourth quarter ended June 30, from estimates of $ 18.41 billion.
The company reported basic earnings of $ 1.13 per share, beating estimates of $ 1.08 per share. (Reporting by Uday Sampath and Siddharth Cavale in Bengaluru; editing by Shounak Dasgupta)
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