P&G Earnings Top Estimates as Price Hikes Offset Rising Costs, Company Raises 2022 Sales Forecast

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P&G Earnings Top Estimates as Price Hike Offset Rising Costs, Company Raises 2022 Sales Forecast

Net sales rose 6% to $20.95 billion, topping expectations of $20.34 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, also rose 6% in the quarter. About half of that growth came from the benefit of raising prices on select products.

For fiscal 2022, P&G is now calling for 3% to 4% sales growth, up from its prior forecast of 2% to 4%. But the company didn't change its outlook for earnings as it also predicted higher costs. For the second consecutive quarter, P&G increased its inflation forecast. The company expects to pay $2.3 billion after tax on commodity costs and $300 million after tax on higher freight costs, up from last quarter's outlook of $2.1 billion on commodities and $200 million on freight. Combined with a $200 million headwind from foreign currency, P&G is forecasting a $2.8 million headwind, or $1.10 per share, to its fiscal 2022 earnings compared with the year prior.

 

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'We care about our workers so we increased wages!' Translation -- 'we're going to overwork them and f--k the rest of you! 😌'

So, 'Inflation Equals Better Earnings for Stockholders Even as Stakeholders Demand Better Wages - Company Believes they can Charge Even More in 2022 forecasting even higher earnings potential' there you go I fixed the headline for you 😉

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