Price Increases For Tide, Charmin And Gillette Boost P&G Profits

Procter & Gamble reported higher profits as the company increased prices at a rate that was more than double the U.S. inflation.

Net income for the quarter ended in September was $4.52 billion, which is 15% more than the previous year, the company said on Wednesday. Revenue grew by 6% to $21.9 billion.

"We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales and core EPS growth," Chairman and Chief Executive Officer Jon Moeller said in the earnings statement. "The P&G team's execution of this strategy has enabled us to build and sustain strong momentum. We have confidence this remains the right strategy to deliver balanced growth and value creation."

Prices in the fabric and home care unit rose by 8% from last year. The division includes brands like detergents Tide, for laundry, and Cascade, for dishwashers. The same increase was applied to the baby, feminine, and family care unit, which is responsible for the toilet paper brand Charmin and Pampers diapers. In the grooming unit, which includes Gillette and Braun, the increases were 9%.

Inflation in the 12 months through September was 3.7%, according to Labor Department data released on Oct. 12.

The volume of P&G's sales in the quarter was 1% below last year, which may indicate that consumers are rejecting price increases and switching to other brands.