As the increase in freight costs continues to remain a concern, Procter & Gamble has decided to further increase the prices of more household goods. The company also warned that costs of the supply chain could be higher than what was previously anticipated. P&G chief financial officer Andre Schulten said that the company will start charging more for some grooming and skincare products. The announcement comes after the company increased the price of a range of other consumer products. This included home and fabric care. Manufacturers and retailers have been under pressure because of accelerating inflation. This is basically of continuous increase in prices of raw materials.
Apart from this, fees of shipping are also on the rise because of logjams at ports and warehouses. Colgate-Palmolive and Kleenex maker Kimberly-Clark are some other consumer companies that have announced increases in prices this year in order to cover the difference. As a result, inflation has increased to its highest level in more than 13 years. Consumers are the ones who are feeling the heat and have no immediate relief in sight. P&G, Crest toothpaste, and Charmin toilet paper have reportedly suffered a loss in profit to the tune of USD 2.1 billion because of the tax from higher commodity costs.
They also suffered a loss of around USD 200 million because of freight costs in the current fiscal. P&G had expected to suffer a loss of around USD 1.9 billion around three months back. Schulten said the company had been paying more for a couple of things like resin, pulp, and other raw materials. Meanwhile, the company continues to face shortages of truck drivers. Rising costs of fuel are another concern for P&G and other such companies. Reacting to it, Schulten said that the company is not expecting any immediate relief in terms of cost pressures. P&G has decided to increase the prices of products so that it can adjust some losses.
