Procter & Gamble’s profits rise despite currency drag

Consumer goods giant Procter & Gamble plans more price hikes on several consumer products due to increasing material costs and the strong dollar, the company announced Friday as it reported a jump in profits.

The cost increases have come amid a series of tariff announcements by US President Donald Trump and retaliatory measures by other governments, which other companies have cited, although P&G executives did not cite the trade conflicts specifically.

P&G, whose brands include Tide detergent and Bounty paper towel, previously announced price hikes on toilet paper and other paper goods in the US. Those increases are still being implemented and were largely not reflected in the just-completed quarter, said Chief Financial Officer Jon Moeller said.

The company had said those hikes were needed due to higher raw material and shipping costs.

But cost pressures on the company have “increased” compared with the July quarter, especially due to the strong dollar, Moeller said.

The currency impact is part of the broader economic story of rising US interest rates pushing the dollar higher, together with weakening exchange rates in troubled emerging market economies.

P&G has notified retailers in the US of price hikes on “several” products in home care, oral care and personal care that will be implemented in the coming months. (AFP)