P&G flags $1B oil hit
- Procter & Gamble said April 24 that surging oil prices and Middle East supply disruptions could cut about $1 billion after tax from fiscal 2027 profit, even after the company beat quarterly estimates. - Finance chief Andre Schulten said crude rising from about $60 to around $100 a barrel is lifting packaging, paper and freight costs; P&G also booked a $150 million fiscal 2026 hit. - The warning extends energy-shock fallout beyond airlines, with Nestlé and Beiersdorf also citing pressure from the conflict. (reuters.com)
Procter & Gamble said higher oil prices could take about $1 billion after tax out of fiscal 2027 profit. (reuters.com) The warning came April 24 as the Tide and Pampers maker reported fiscal third-quarter net sales of $21.2 billion, up 7%, and core earnings per share of $1.59, up 3%. (pginvestor.com) (cnbc.com) P&G kept its fiscal 2026 outlook, but said earnings per share should land at the lower end of its range of flat to up 4%. Andre Schulten, the company’s finance chief, said Middle East-related commodity, feedstock and logistics disruption would cut about $150 million after tax this fiscal year. (reuters.com) (pginvestor.com) Oil matters to a consumer-goods company because crude is not just fuel. It is also a raw material for plastics, packaging and chemicals used across detergents, diapers and personal-care products. (reuters.com) Schulten said P&G’s fiscal 2027 estimate assumes oil moved from about $60 a barrel before the conflict to around $100. The company said that jump is raising costs for plastics, paper packaging and transportation. (reuters.com) P&G also said some direct suppliers had declared force majeure, meaning they said they could not fulfill deliveries under existing terms. The company said it was positioned to manage through those supply-chain disruptions. (reuters.com) The quarter itself was helped by stronger demand in beauty, where organic sales rose 8%, and by broad-based volume growth across all 10 product categories. Fabric and home care organic sales rose 4%, while baby, feminine and family care rose 4%. (pginvestor.com) Reuters reported P&G’s projected fiscal 2027 oil hit is among the largest disclosed outside airlines since the Iran war began. Reuters also found 24 companies had cut or withdrawn outlooks, while 35 signaled price increases and 35 warned of a financial hit. (reuters.com) Other consumer companies are signaling the same pressure. Reuters said Nestlé warned about higher costs tied to the Strait of Hormuz blockade, and Beiersdorf said it was considering price increases if commodity costs stay elevated. (reuters.com) For now, P&G is still selling more product and holding its annual guidance. But a company that spent $40.85 billion on cost of goods sold in 2025 is telling investors that oil has become a consumer-staples problem, not just an energy-market one. (reuters.com)
