P&G To Hike Prices At Least 3%, Expects Others To Follow
This article was originally published in The Rose Sheet
Procter & Gamble expects that an across-the-board price increase of at least 3% – spurred by higher commodity costs – will prompt its competitors to raise product prices as well.
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P&G will roll back about $400 million of the $3.5 billion in pricing increases taken in fiscal year 2012, in an effort to include beauty and health-care products. Beauty sales declined 4% on the year, the firm reported.
Procter & Gamble expects commodity costs to drop over the next two quarters, but for the firm’s FY 2012 second quarter, they contributed to a 49% decline in earnings to $1.69 billion.
Growth of Procter & Gamble's beauty business in developing markets kept the unit afloat in the fourth quarter and fiscal year 2011, despite challenges in the U.S. including the recall of Olay UV products and a continuing rebuild of Pantene equity.