P&G beats quarterly sales estimates, warns of higher supply chain costs

P&G beats quarterly sales estimates, warns of higher supply chain costs

P&G beats quarterly sales estimates, warns of higher supply chain costs

Tide laundry detergent, a product distributed by Procter & Gamble, is pictured on sale at a Ralphs grocery store in Pasadena, California January 21, 2014. REUTERS/Mario Anzuoni

Oct 19 (Reuters) – Procter & Gamble Co (PG.N) beat quarterly sales estimates on Tuesday as easing of pandemic-related restrictions boosted demand for its personal care products, while the company warned of higher commodity and transportation expenses.

The Tide detergent maker said it now expects a hit of about $2.3 billion related to commodity and freight costs this fiscal year, compared with a prior forecast of about $1.9 billion, as the stop-and-start nature of the pandemic, worker shortages and clogged shipping ports affect global supply chains.

Price hikes due to the rising costs and an increase in demand for personal care products spurred by people returning to social events helped boost P&G’s sales by 5% to $20.34 billion in the first quarter.

Analysts had expected sales of $19.91 billion, according to IBES data from Refinitiv.

Net income attributable to Procter & Gamble decreased 4% to $4.11 billion, or $1.61 per share.

Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta

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