The Procter & Gamble Co. posted a 5 percent increase in sales for the second quarter, and said it’s about to raise prices for skin care, oral care and grooming products.
For the quarter ended Sept. 30, P&G reported sales of $20.3 billion. Net earnings were $4.1 billion, a 4 percent dip from the prior year for that period, ended Sept. 30.
Beauty sales totaled nearly $4 billion in the quarter, up 5 percent from the prior-year period. The segment’s net earnings were $991 million. Hair care sales, as well as skin and personal care sales increased, P&G said.
Grooming sales also rose, driven by shave care and offset by appliances, which decreased. For the quarter, grooming sales were about $1.7 billion, a 5 percent increase from the prior-year period, with net earnings of $417 million.
Both the beauty and grooming segments will be subject to price increases, which P&G informed retail partners about recently, chief financial officer Andre Schulten told reporters on an early-morning media briefing.
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“We announced price increases to retailers in the U.S. on oral care, skin care and grooming,” Schulten said. “It’s item by item,” he added, declining to share specifics on how much prices would rise.
P&G is “not immune” to supply chain challenges and Schulten said pricing has been a contributor to overall sales growth. But he said increasing prices was “not a supply chain driven strategy, it is a strategy grounded in superiority across product, package communication execution and value at every price point on the ladder.”
In a research note, Citi analyst Wendy Nicholson said P&G’s margins “were clearly under pressure from high commodity costs,” but she is encouraged to see P&G “once again post solid topline performance.”
For the fiscal 2022 year, P&G expects to see sales growth between 2 and 4 percent.
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