P&G Plans Price Increases in Beauty – WWD

The Procter & Gamble Co. posted a 5 p.c enhance in gross sales for the second quarter, and stated that it’s about to boost costs for skincare, oral care and grooming merchandise.

For the quarter ended Sept. 30, P&G reported gross sales of $20.3 billion. Web earnings have been $4.1 billion, a 4 p.c dip from the prior yr for that interval, ended Sept. 30. 

Beauty gross sales totaled practically $4 billion within the quarter, up 5 p.c from the prior-year interval. The phase’s web earnings have been $991 million. Hair care gross sales, in addition to pores and skin and private care gross sales  elevated, P&G stated. 

Grooming gross sales additionally rose, pushed by shave care and offset by home equipment, which decreased. For the quarter, grooming gross sales have been about $1.7 billion, a 5 p.c enhance from the prior-year interval, with web earnings of $417 million.

Each the beauty and grooming segments can be topic to cost will increase, which P&G knowledgeable retail companions about not too long ago, chief monetary officer Andre Schulten informed reporters on an early-morning media briefing. 

“We introduced value will increase to retailers within the U.S. on oral care, skincare and grooming,” Schulten stated. “It’s merchandise by merchandise,” he added, declining to share specifics on how a lot costs would rise.

P&G is “not immune” to provide chain challenges and Schulten stated that pricing has been a contributor to general gross sales development. However he stated that growing costs was “not a provide chain pushed technique, it’s a technique grounded in superiority throughout product, bundle communication execution and worth at each value level on the ladder.” 

In a analysis notice, Citi analyst Wendy Nicholson stated that P&G’s margins “have been clearly beneath strain from excessive commodity prices,” however she is inspired to see P&G “as soon as once more put up stable topline efficiency.”

For the fiscal 2022 yr, P&G expects to see gross sales development between 2 and 4 p.c. 

For extra from WWD.com, see: 

P&G Beauty’s Alex Keith, Walmart’s Musab Balbale on Brand Cocreation

Updated: All the Beauty M&A Deals of 2021

Female Beauty Founders Talk Navigating a Male-dominated VC World

https://wwd.com/beauty-industry-news/beauty-features/procter-gamble-price-increases-1234978705/ | P&G Plans Value Will increase in Magnificence – WWD


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