Procter & Gamble said Tuesday it will boost prices on its paper products, such as its Pampers diapers, Tampax tampons and Always Discreet, to combat rising commodity costs.
The Cincinnati-based consumer products giant said the increases will range from 5% to 9% starting in mid-September, to combat rising commodity costs.
"(We) started the process of implementing price increases on (the company's) Baby Care, Feminine Care and Adult Incontinence product categories in the United States," P&G said in a statement.
P&G officials noted paper products in its Family Care business – which includes Charmin toilet paper, Puffs facial tissue and Bounty paper towels – are not part of the planned price increases.
The move comes a few weeks after competitor Kimberly-Clark made a similar announcement. The Dallas-based maker of the Huggies diapers, Cottonelle and Scott toilet paper and Viva paper towels said it would boost prices on "a majority of its North America consumer products business," including its baby and child care, adult care and bathroom tissue businesses.
P&G's chief operating officer Jon Moeller told analysts on a Tuesday conference call the industry was dealing with bigger increases" in commodity costs than he'd seen in "a long period of time."
"When commodities move significantly... the industry is pushed to price," Moeller said.
The price increases came as the company reported a $3.3 billion profit Tuesday, a 12.1% increase from the same period a year ago.
Sales rose 5.2% to $18.1 billion. Organic sales – a key measure of sales excluding impacts from foreign exchange, mergers or acquisitions – climbed 4%.
The company disclosed Tuesday price previous price increases contributed to overall sales results. Sales also rose as consumers traded up to premium products.
Wall Street analysts predicted P&G would garner a $3.1 billion profit before one-time items on sales of $17.8 billion.
“We remain focused on executing our strategies... (that) enabled us to build strong business momentum before the COVID crisis and accelerate our progress during the crisis, and they remain the right strategies to deliver balanced growth and value creation over the long term,” CEO David Taylor said, in a statement.
Last year, P&G reported a $2.9 billion profit on sales of $17.2 billion for the same quarter.
Last week, the company announced it will boost its quarterly dividend payment 10% to nearly 87 cents per share.
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Based in downtown Cincinnati, P&G is the largest consumer products company in the world, responsible for making toiletries in consumers' pantries or medicine cabinets, such as Crest toothpaste and Gillette razors.
The company employs 99,000 worldwide, including 10,000 in Greater Cincinnati.
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