(Reuters) – Procter & Gamble raised its annual core profit forecast on Friday on price increases and resilient demand for its cleaning and household products in the United States and Europe.
Even as P&G raised prices of its products over the last two years, demand for its daily-use items such as big name brands Tide and Pampers has held steady.
However, the focus has now shifted to the company’s ability to increase volumes of sales as benefits from price hikes that added to sales growth start to wane.
P&G reported overall flat volumes in the third quarter, while the average prices across its product categories rose 3%.
The consumer goods giant now expects core earnings to rise between 10% and 11% in fiscal 2024, compared with its prior forecast of 8% to 9% growth.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
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