P&G Exceeds Quarterly Profit Expectations Due To Higher Prices

Procter & Gamble's quarterly sales and profits have surpassed market expectations, supported by consistent demand for its personal care products and cleaning supplies, along with price increases, according to Deborah Sophia's report for Reuters.

The company's shares rose approximately 1% in premarket trading. I Photo: Warren LeMay Wikimedia Commons

P&G has consistently raised prices on its products over the past few months. While this has resulted in weaker sales volumes as some cost-conscious consumers turned to more affordable alternatives, the benefits of higher prices have contributed to stronger profits.

Despite negative sales volumes, P&G's volume performance has improved over the past few weeks, as noted by UBS analysts.

They anticipate the company's volumes to outperform most others in the consumer goods industry.

Higher prices, in combination with reduced costs for certain commodities and stabilization in other supply chain and input expenses, have supported a steady recovery in P&G's margins.

Known for its products, including Gillette razors, Oral-B toothbrushes, and Dawn dish soap, P&G reported a 460 basis point improvement in its gross margin, reaching 52% in the quarter ending on September 30. The company's shares rose approximately 1% in premarket trading.

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