Procter & Gamble Raises Full-Year Sales Forecast on Higher Pricing

Reuters2023-04-21

April 21 (Reuters) - Procter & Gamble Co raised its full-year sales forecast on Friday, signaling higher prices would offset the hit from consumers turning to cheaper, private-label alternatives for tissues and other household essentials.

The Tide detergent maker's shares rose 1% in premarket trading.

P&G also said its expects annual earnings per share towards the lower end of the fiscal year guidance range.

Products made by companies such as P&G and Unilever are usually among the last to see a slowdown in demand during economic downturns, unlike discretionary items including appliances and furniture.

Demand has also managed to hold up against a series of price hikes by these companies to pass on steep input costs that stemmed from supply-chain snags and were worsened by the Ukraine crisis in 2022.

The Pantene shampoo maker reported a 3% fall in overall volumes in the third quarter, with average prices across its product categories rising 10%.

The company said it expects fiscal 2023 organic sales growth of about 6%, compared with its previous forecast for a 4% to 5% increase.

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