The global daily chemical giant Procter & Gamble a

2022-07-31
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Rise together! After Coca Cola, the global daily chemical giant P & G also announced price increases! Involving these products

release date: Source: daily economy

up! First, Kimberly Clark raised the price, then Coca Cola announced the price rise, and now the international daily chemical giant P & G is going to raise the price! It is worth mentioning that P & G's products include Pantene, rejoice, haifeisi, Shufujia, hushubao and other products

according to the Wall Street report, on April 21, the international daily chemical giant P & G said that it would increase the prices of baby products, adult diapers and women's care products from September this year. The price increases of different products vary. The price increases of some goods may be between 5% and 9%. P & G said that this may be a harbinger of a wider range of commodity price increases

in P & G's performance announcement for the third quarter of fiscal year 2021, the company said that its price increase will vary by brand, but the increase will be in the range of medium to high single digits. The company is also evaluating the cost of raw materials and the impact of foreign exchange on other product categories, which means that the price increase of the company's products will be greater

in the future, if the product price is confirmed to rise, P & G plans to maintain market share by improving consumers' awareness of the value of its products and launching new or upgraded products

under the pressure of rising production costs, Coca Cola, P & G and other multinational consumer giants recently announced their product price increase plans, all on the grounds that rising commodity prices have brought pressure to the company's operations. According to the analysis of market participants in Shanghai Securities News, the collective price rise of enterprises will put pressure on the Federal Reserve and may force them to abandon their optimistic stance on inflation

to help prolong the service life of equipment and make you more confident in equipment operation, P & G began to raise prices in September.

according to the Wall Street report, P & G is the latest and largest consumer goods company that recently announced that it would raise prices. As a manufacturer of Jili's razor and tide washing powder in the cutting-edge new materials, P & G said that the price increase was due to the rising cost of raw materials such as resin and paper that fixed the test samples to the lower friction table pulp, as well as the increase in transportation costs. At the same time, the company said that the announcement would be a precursor to a wider range of price increases

Jon Moeller, chief operating officer (CEO) of P & G for 33 years, said, "this is the largest increase in the cost of bulk commodities we have seen since I have been involved in the work for quite a long time."

Moller said that while raising prices, the company also hopes to improve products and increase product performance, so as to make consumers feel more "value for money". The price increase will take effect in September this year, involving baby products, adult diapers and women's care brands. Different products have different price increases. Some commodity prices may rise between 5% and 9%

on April 20 local time, P & G announced the third quarter performance of fiscal year 2021 while announcing the price increase. Thanks to the increased use of cleaning products by consumers during the epidemic period, the company performed well in the last quarter. Among them, organic sales (excluding the impact of acquisitions and exchange rate fluctuations) increased by 4%, with the largest increase in the company's beauty, fabric and home care departments

it is reported that this result is the slowest overall organic sales growth of P & G since 2018. In the previous year, the epidemic had pushed up the demand for cleaning products, paper towels and toilet paper. "This is a different situation because the recovery of the epidemic around the world is at different stages." "All aspects of consumption are very strong," Moller said

Moller said that although the sales boom of some products is cooling, consumers' demand for other products is picking up, such as beauty products and related supplies directly sold to enterprises that closed down on a large scale during the epidemic but now reopened

in the third quarter, the net sales reached US $18.109 billion, a year-on-year increase of 5%, while the sales reached the level for the first time in many years, and the price increased by 2%

the net profit was US $3.249 billion, a year-on-year increase of 10%. Analysts had expected the net profit of the company to be US $3.09 billion. Diluted earnings per share of 1 plastic in the field of food and beverage packaging will continue to maintain a strong position US $26, up from US $1.12 in the same period last year, an increase of 13% year-on-year

for large consumer goods companies, the last time the price rose sharply due to the cost of materials was in 2018, when the soaring price of pulp pushed up the prices of diapers, toilet paper and other products

Coca Cola and paper giant Kimberly Clark collectively raised prices

P & G is not the first consumer goods giant to announce price increases

the global supply chain, which is fragile due to the epidemic, was also affected by other conditions not long ago. The extreme cold weather in February this year led to a large-scale power outage in Texas, the closure of chemical plants and a shortage of raw materials, which further led to the price of polyethylene, polypropylene and other chemical compounds rising to the highest level in many years. Since the beginning of this year, commodity prices have continued to rise, and the pressure on enterprises to increase costs has increased sharply. Many consumer giants have announced price increase plans

Coca Cola said this week that the commodity environment will be challenging in the next 12 to 18 months. The prices of plastics, aluminum, high fructose corn syrup and other materials show signs of rising. The company plans to raise product prices to cope with inflationary pressures

although this move can help Coca Cola improve its profit margin, it may be at the cost of losing some price sensitive consumers

"we have good hedging measures in 2021, but there will be great pressure in 2022, so we have to raise prices." Coca Cola CEO Quincy said that in the future, the company will start with changing the packaging, size and other aspects, and increase the price more delicately

inflation pressure has been transmitted from downstream to upstream. Kimberlyclark, one of the world's largest paper products manufacturers, announced in March that it would start raising the prices of most products in North America to help cope with the rising pressure of raw materials. This measure will take effect in late June

Wells Fargo analyst Chris Carey previously gave Kimberly Clark a "underweight" rating and a target share price of $130. He said that the impact of rising commodity prices on the company may have exceeded 1billion US dollars this year, and Kimberley needs to act quickly to protect profits

almost at the same time, several food producers raised prices. It is reported that Hormel food company announced in February this year that it had raised the price of turkey products in response to the rise in grain prices. J.M. Smucker recently raised the price of jif peanut butter, and the company may also raise the price of pet snacks due to higher transportation costs and other inflationary pressures. General Mills (its subsidiaries include Haagen Dazs ice cream, Wanchai wharf, Weibang and other food brands familiar to investors. At present, the company has more than 500 varieties of products) has also announced plans to increase product prices

at present, the price pressure in the United States is gradually emerging. Previously released data showed that the US CPI in March rose by 2.6% year-on-year, the highest level since the autumn of 2018, higher than the US Federal Reserve's inflation target of about 2%

Federal Reserve Chairman Powell said last week that the Federal Reserve hopes that the inflation rate will be moderately higher than 2% for a period of time. Most Federal Reserve officials do not believe that interest rates will be raised before 2024

rising inflation concerns

the price increase announcements issued by international giants have superimposed the implementation of trillions of US economic stimulus plans, and the market is increasingly worried about the rising pressure of inflation

the beige book on economic conditions released by the Federal Reserve last week pointed out that the upward speed of prices in early April further accelerated. It is expected that prices will continue to rise in the short term, and input costs will rise in an all-round way, especially in the manufacturing, construction, retail and transportation industries, especially in metal, wood, food and fuel prices

the world bank said on Tuesday that driven by strong economic growth in the first quarter, it is expected that global commodity prices will remain near the current level in 2021

Edward Moya, senior analyst of OANDA in New York, a foreign exchange trading agency, commented that the rising prices of raw materials in the manufacturing sector forced P & G to raise prices in September. P & G is not the only company making this response, which may eventually make the Federal Reserve abandon its temporary neutral position on inflation

not just manufacturing. According to the report released by the food and Agriculture Organization of the United Nations on April 8, global food commodity prices rose for 10 consecutive months in March, among which vegetable oil and dairy products rose the most. The FAO food price index tracks the international price changes of food commodities with the most active Global trade every month. In March, the index averaged 118.5 points, up 2.1% month on month, and has climbed to the highest level since june2014

Goldman Sachs analysts believe that consumers are likely to feel the pressure of rising prices in the coming months, partly because of the surge in market demand after the reopening of the economy, rather than the soaring inflation rate

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