Procter & GambleAs commodity and freight prices rise, the company is raising its prices to preserve its profit margins.

On Wednesday, the company’s earnings conference stated on Wednesday that it already gave information to retailers regarding price increases for fabric care products such as Downy dryer sheets or Tide detergent. The prices are due to go into effect February 28, according to the retailer giant. The company informed retailers on Tuesday that prices for some personal care products would rise in the middle of April.

P&G has already raised prices on 10 product categories across its portfolio: baby care, feminine care, adult incontinence, family care, home care, hair care, grooming, oral care and skincare. The increase is not limited to the U.S. It is raising prices on some international markets.

“The timing and degree of these moves depend on the brand and category. Sometimes, the product form is within the brand. Andre Schulten, the CFO of the company, said that this isn’t an all-encompassing approach.

As inflation increases at an unprecedented rate, the Tide owner is not the only one facing rising costs. This is the producer price index was up 9.7% on a 12-month basisTo end 2021, this will be the largest calendar-year growth ever recorded in data dating back to 2010. consumer price index climbed 7%The highest since 1982, at the same time.

For the second consecutive quarter, P&G increased its inflation forecast. After tax, the company will pay $2.3Billion in commodity cost costs. It also expects to pay $300M after tax for higher freight prices. That’s an improvement on last quarter’s forecast of $2.1Billion on commodities and $200M on freight.

Price increases accounted for about half the company’s organic growth of 6% in fiscal year 2. The majority of pricing adjustments that the company announced have not yet been implemented, executives stated.

Sometimes, higher prices may cause consumers to switch to lower-priced alternatives or private label products. But P&G appears confident in its pricing strategy. Executives told analysts on the conference call that its rivals are facing the same commodity cost pressure, unlike foreign currency headwinds that deal a greater hit to P&G because of its larger global presence.

For 17 of the past 18 years and 42 of the 45 last quarters, pricing has contributed positively to our top line. Jon Moeller, CEO of CNBC, said Wednesday that a business model that is based on innovation, which provides greater levels of pleasure and solves more problems for consumers, allows you to charge slightly higher prices. “Squawk Box.”

And while P&G is still waiting for most of its announced price hikes to occur, those that have already taken effect haven’t hurt business or dented its market share.

Moeller stated that while it is still early to see price rises based on commodity, there are positive signs so far. “Squawk Box.” “Probably 20% to 30% less price elasticity than we were expecting, and if you look at, for example, private-label market shares — private label being the lowest price offered on the market — they’re down.”

This means that consumers will pay more to get the brand they trust, rather than just buying the cheapest option in laundry detergent or toilet paper.

Moeller warned analysts, however, that pricing will face setbacks.

He stated that “there will be bumps along the road.” There will be instances when we have to adjust pricing and either face the competitive reaction or the consumer reaction you rightly expect.

Shares of P&G were up 3.8% in morning trading after the company reported its fiscal second-quarter results. Wall Street was pleasantly surprised by the quarterly earnings, revenue and projections for 2022.