P&G beats Q1, raises sales guidance on Thorne acquisition; warns commodity costs will hit profit by $1.4B as Iran-war fuel costs bite

What happened

Procter & Gamble reported fiscal Q1 earnings of $2.00 per share, beating the $1.88-$1.94 consensus, on revenue of $23.28 billion (+4%), above the ~$22.8 billion expected, with organic growth across every product category and volumes up 2.4%. The company raised its full-year all-in sales growth guidance to 2%-4% (from 1%-3%), attributing the lift to its completed $3.8 billion acquisition of supplements brand Thorne, while reiterating core EPS guidance of $6.89-$7.11. At the same time, P&G warned that higher commodity-related costs — raw materials, energy, and transportation — will reduce fiscal 2027 profit by about $1.4 billion, up from its prior $1 billion estimate; core operating margin fell 80 basis points despite 250 basis points of productivity savings. Reuters reported that record retail diesel prices from the U.S.-Iran war and a truck-driver shortage on some routes are pushing freight costs higher across packaged goods.

Who’s affected

• Procter & Gamble (PG): beat + raised sales outlook; +2-3.2% premarket
• Consumer staples broadly: first large-cap signal of how Iran-war energy costs are flowing into packaged-goods margins
• Transportation/freight-exposed retailers and goods producers facing the same diesel and shipping-cost pressure

Sources

reuters.combarrons.com