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Procter & Gamble Sees Resilient Consumer Demand Despite Higher Commodity Costs

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Procter & Gamble Sees Resilient Consumer Demand Despite Higher Commodity Costs

Consumer packaged goods (CPG) company Procter & Gamble expects the costs of raw materials, energy and transportation to be higher throughout its fiscal year 2027, the firm said in a Thursday (Oct. 22) press release outlining its results for the first quarter of fiscal 2027.

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Those costs will present the company with a commodity cost headwind of $1.4 billion after tax during the fiscal year, according to the release.

Procter & Gamble’s fiscal year 2027 guidance now includes organic sales growth of 1% to 3% and core earnings per share (EPS) of 0% to 3%, according to an earnings release presentation released Thursday.

While sharing this outlook during a Thursday earnings call, Procter & Gamble Chief Financial Officer Andre Schulten said the higher costs result primarily from the conflict in the Middle East.

“This estimate assumes an effective Brent crude oil price of $100 a barrel,” Schulten said of the headwind. “Due to the duration of higher oil prices, we now expect materially higher cost headwinds in Q2 and the second half of fiscal 2027.”

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Schulten said earlier in the call that Procter & Gamble expects the macro environment to remain “volatile and challenging” in terms of cost, currencies, geopolitical dynamics and other factors.

“We will be closely watching consumer demand as high fuel and energy costs persist into the fall and winter,” Schulten said.


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