Procter & Gamble (P&G) will raise the prices of some of its grooming, oral and skin care products in the U.S.
The consumer goods company will apply the increases to specific items such as razors alongside some sub-categories.
The price hikes are to counter higher commodity and freight costs that are expected to take a bigger chunk out of its earnings this year.
Shares of the company were down 2.2 per cent at $139.24 in its lower quarterly earnings.
However, P&G kept its full-year forecast for earnings per share growth in the three to six per cent range, with net sales expected to be between two and four per cent.
The company is banking that price hikes and higher demand for premium products will help offset the increase in costs.
Andre Schulten, CFO, said, “We expect pricing to be a larger contributor to sales growth in coming quarters as more of our price increases become effective.”
Global supply chains are under strain due to the resurgence of COVID-19 cases in Asia and labour shortages in the United States.
This has resulted in a surge in raw material prices that is also squeezing profits at Unilever and Reckitt Benckiser.
On Tuesday, P&G also raised its commodity and freight costs for this fiscal year to $2.3bn from $1.9 billion.
Shulten added, “”We do not anticipate any easing in these commodity cost pressures.”