P&G raises oil-linked cost hit to 1.4 billion dollars

Procter & Gamble raised its expected fiscal 2027 hit from raw material, energy and freight costs to about 1.4 billion dollars from 1 billion dollars, even as first-quarter sales rose 4 percent to 23.28 billion dollars and beat estimates.

Why it matters: P&G is a clean read on how the oil shock is passing into consumer-goods costs: demand and volumes held up, but the company expects commodity pressure to build over the next two quarters, a pattern airlines and other consumer firms are also reporting.

Data as of Reuters report on Procter & Gamble first-quarter results and guidance, published October 22, 2026 and updated 10:48 EDT, read in full; the 1.4 billion dollar cost estimate, sales and earnings figures and CFO comments are as reported there. Developing item.

Procter & Gamble said on Thursday that higher raw material, energy and freight costs will cut fiscal 2027 profit by about 1.4 billion dollars, up from its previous estimate of 1 billion dollars, with finance chief Andre Schulten warning that commodity pressure will increase over the next two quarters. The warning came alongside a first-quarter beat: net sales rose 4 percent to 23.28 billion dollars against estimates of 22.80 billion dollars, core earnings were 2.00 dollars a share against 1.88 dollars expected, and volumes rose 2.4 percent as beauty and home-care demand held up.

The company kept its annual guidance unchanged, at organic sales growth of 1 to 3 percent and core earnings of roughly 7 dollars a share, and its shares rose about 5 percent in early trading.

P&G raises oil-linked cost hit to 1.4 billion dollars

Sources