P&G, like other consumer goods companies, has been pushing multiple price increases over the last few months to cover soaring transportation, commodity and labor costs, as well as the impact of a stronger U.S. dollar on its overseas revenue.
While the price hikes have been met with less pushback compared to those in discretionary products that customers have largely shunned, sales volumes for P&G have still dipped. The company reported a 6% fall in overall volumes in the second quarter.
Average prices across its product categories rose 10%.
The company said it expects fiscal 2023 total sales to be flat to fall 1%, compared with its previous forecast of a 1% to 3% fall.
However, the company maintained its annual earnings forecast of flat to up 4%, citing elevated commodity costs.
(Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)
