Recently, Procter & Gamble and Unilever have successively released price increase signals. When the world's two major daily chemical giants have announced price increases, do you panic? Due to energy shortages, port congestion, labor restrictions, freight containers and truck sho

China News Service, Beijing, October 28 (Reporter Xie Yiguan) Recently, Procter & Gamble and Unilever have successively released price increase signals. When the world's two major daily chemical giants have successively announced price increases, do you panic?

After diapers have gone up, toothpaste will also increase in price?

On October 19, local time, P&G released its first fiscal quarter report for 2022 as of September 30. Revenue was US$5.023 billion, a decrease of 4.89% from the same period last year; net profit was US$4.112 billion, lower than 4.277 billion in the same period last year. Dollar. Both revenue and net profit fell.

Procter & Gamble pointed out in its financial report that market price fluctuations in commodity input materials such as resin and pulp have a direct impact on costs. Disruptions to the Company's manufacturing, supply and distribution operations due to energy shortages, port congestion, labor constraints, freight container and truck shortages, etc. have also impacted costs and may continue to have an impact in the future.

"If the company is unable to overcome these effects through pricing actions, etc., it may have an adverse impact on the company's gross profit margin, operating profit margin, net profit and cash flow ." P&G said.

The picture shows some of Procter & Gamble’s cleaning and care brands sold in supermarkets. Photographed by China News Service reporter Xie Yiguan

P&G owns OLAY, SK-II, Pantene, Head and Shoulders, Safeguard, Crest, Oral B, Gillette, Tide, Bilang and other well-known brands.

According to CNN, P&G said on October 19 that it was increasing the prices of some beauty, cosmetics and oral care products to cope with higher costs.

While P&G did not specify which brands it would raise prices on, an email P&G sent to dealers obtained by CNN indicated that Olay , Crest and Oral-B products would be more expensive .

After P&G, Unilever will also increase prices

followed closely. On October 21, local time, Unilever released its third quarter financial report for fiscal year 2021. The financial report shows that Unilever's basic sales increased by 2.5% to 13.5 billion euros, and prices increased by 4.1%, an increase from the first half of the year.

In this regard, Unilever explained, "Because the company takes pricing actions to offset the impact of rising commodity and other input costs."

The picture shows Dove products sold in supermarkets. Photographed by China News Service reporter Xie Yiguan

Unilever also revealed in its financial report that "cost inflation remains at a high level, and this situation will continue into next year. The company will take appropriate pricing actions and implement a series of productivity measures to offset the increase "

Unilever owns Dove , Lux , Qingyang, China , Vaseline , Jinfang , Omo , Heluxue, Lipton and other brands. Personal care, home care, food and beverage and other fields.

Unilever Chief Financial Officer Graeme Pitkethly told the media that Unilever has been affected by the rising prices of palm oil , soybean oil, crude oil derivatives including resins, and transportation costs. "Inflation is likely to be higher next year, and companies may have to deal with spot pricing as hedges expire."

Multiple food giants have announced price increases

It's not just P&G and Unilever, global health care giants have Kimberly-Clark of Kleenex, Huggies, Colgate and other brands also said on October 25, local time, that the company planned to increase prices for the second time this year to mitigate the adverse effects of "severe inflation."

The picture shows Colgate sanitary napkins sold in supermarkets. Photo by China News Service reporter Xie Yiguan

"We expect to offset inflation through pricing and cost reductions," Kimberly-Clark CEO Michael Hsu said at the company's third quarter earnings conference call on the 25th.

In addition to daily chemicals, the food field has already seen a wave of price increases.

Recently, with the release of the third quarter financial report, the beverage giant Pepsi issued a price increase warning; in April this year, Pepsi's "old rival" The Coca-Cola Company announced that it would increase product prices; both are international food and beverage giants. Nestle Group recently stated that "the company increased prices by 2.1% in the third quarter."

In addition, in August this year, the multinational food company Orion confirmed to domestic media that the prices of some pie products will increase starting from September 1. Domestic food giant and Dali Group issued price adjustment notices for some products in three major food series to dealers.

A wave of price increases is coming to consumers, are you ready? (End)

Source: China News Network