Procter & Gamble
P&G, which accounted for 44% of market share in the U.S. diaper market as of 2017, increased pricing on its baby care products in February 2022 to protect its profit margins.
The company’s FY 2021 profits increased 10% to $14.3 billion and P&G returned $19.3 billion to shareholders — a $4.1 billion increase from FY 2020 — with its most recent quarter showing continued profit growth. On the company’s latest earnings call, executives told investors they are “thoughtfully executing tailored price increases” with more price hikes planned for essential items like feminine and oral care products this summer.
Procter & Gamble raked in $21 billion in the last quarter of 2021, in part because of raising prices for goods families need, like products to treat cold and cough symptoms and cleaning supplies. Chief Executive Jon Moller said recently these increased prices for consumers are helping the company “raise estimates for sales growth, cash productivity and cash return to shareowners.”
In early 2022, Procter & Gamble announced price increases in all 10 of their product categories. CEO Andre Schulten knows they can do that because consumers rely on their basic essentials, from baby care to feminine products to cleaning supplies. Hiking up prices on these essential products drove revenue 6% higher from the previous year and the company predicted more price increases to come.