American shoppers are paying high prices for on a regular basis products corresponding to Tide detergent, Gillette razors and Oral-B toothpaste – a trend that led to parent company Procter & Gamble’s strong quarterly sales, in accordance with results published on Friday.
The buyer goods giant said it had raised prices by 10% across brands for the three months ending March 31, with the biggest increases for products in the textiles and homeware categories.
It was the second consecutive quarter of double-digit increases for Procter & Gamble in comparison with prices a yr ago. US households are paying the bill for persistent inflation as various firms pass on their higher costs to society.
P&G’s chief financial officer Andre Schulten said the company performed well despite “still difficult cost and operating conditions.”
“The US consumer is doing well,” added Schulten during Friday’s earnings call.
Inflation has fallen because it peaked at 9.1% last summer, even though it continues to weigh on household budgets. The Consumer Price Index rose 5% year-on-year in March – the smallest increase in nearly two years, but still well above the Federal Reserve’s 2% goal.
The Cincinnati-based company’s third-quarter results beat Wall Street expectations.
![Tidal detergent](https://nypost.com/wp-content/uploads/sites/2/2023/04/NYPICHPDPICT000009956470.jpg?w=1024)
Net sales rose 4% to $20.1 billion, surpassing the $19.32 billion projected by analysts surveyed by Refinitiv. Net income was $3.42 billion, or $1.37 per share, beating the $1.32 expected.
The corporate also improved its forecast for 2023, projecting organic sales growth of 6% in fiscal yr 2023, in comparison with an earlier forecast of 4% to five% growth.
P&G shares rose almost 4% in Friday trading due to strong performance.
![Procter & Gamble sign](https://nypost.com/wp-content/uploads/sites/2/2023/04/NYPICHPDPICT000009964685.jpg?w=1024)
Sales were strong despite inflation-weary consumers buying fewer Procter & Gamble products.
“The issue for a company that takes prices around the world, including in the US, is when (consumer demand) doesn’t work in their favor,” Samantha Palm, a portfolio manager at San Francisco-based Parnassus Investments, told Reuters. .
“It is not that we’re saying price-taking is not justified, but price-taking in an environment that might be recessive in 2023 and 2024 could have consequences for consumers.”
In line with the company’s results, sales volume decreased by 3% in the quarter. Still, this was an improvement over the 6% decline in sales volume in the previous quarter.
Volume declines were sharper in Europe, falling 7% as customers turned to personal label competitors relatively than buying higher-end products.
In line with Schulten, the decline in sales volume was “obviously on account of prices”.
“We’re seeing consumers being a bit more careful about dosing and reducing supplies over time,” added Schulten.
Procter & Gamble also benefited from the reopening of the economy in China, the company’s second largest market after the United States. Executives said they expect “many twists and turns along the way” as the country moves through the end of COVID-19 lockdowns.
With postal wires