P&G flags bigger hit to annual profit from higher commodity costs, beats revenue estimates

By Juveria Tabassum and Alexander Marrow Oct 22 (Reuters) Procter Gamble on Thursday warned of a profit hit from higher commodity-related costs this year, even as first-quarter sales beat Wall ​Street estimates, helped by demand for its beauty and ‌home-care products. The Pantene shampoo maker now expects higher raw material, energy and transportation costs to reduce fiscal 2027 profit by about $1.4 billion, up from its previous estimate of $1 billion. Core operating margin fell 80 basis points in the quarter ended ‌September ​30, despite 250 basis points of productivity ⁠savings, including efforts to ⁠make its supply chain more efficient. Higher fuel prices have pushed up transportation and freight costs for packaged-goods companies, while a shortage of truck drivers on some routes has added to the pressure, ​a P G spokesperson told Reuters. US retail diesel prices, which have risen following the U.S. war in Iran, hit a record $6 a ⁠gallon in September and have remained ⁠elevated.