(Bloomberg) — Procter & Gamble (NYSE:) Co. and Kimberly-Clark Corp (NYSE:) earnings this week will give investors an updated look at whether sustained price increases in commodities such as energy and plastics threaten to knock companies’ profitability projections off track.

Russia’s invasion of Ukraine has exacerbated commodity inflation, with Barclays Lauren Lieberman’s (LON) analysis showed that main ingredients used for household and personal care have increased 50% in the past three months compared to a year ago. Companies such as aluminum-foil maker Reynolds Consumer Products (NASDAQ:) Inc. said earlier this year they expected costs to abate as 2022 unfurled, and that, along with price increases they’d implemented, would help boost profits. This outlook is being questioned by the war in Ukraine.

“We would not be surprised to hear companies discuss the increasingly tough operating environment that emerged over the quarter,” Lieberman said in a note.

In March, the first month to fully reflect the invasion’s effects, prices rose for all of the 13 commodities that Barclays tracks for personal- and household-goods companies. These include bleaching paper with chlorine and plastics that are made from plastics. 

The first quarter’s increase in commodity costs contributed to a decision by Stifel Financial (NYSE:) Corp. analyst Mark Astrachan to lower earnings per share estimates for P&G and Reynolds, according to an April 12 note.

Companies often hedge commodities and buy materials at different points of the year, which could affect when and how hard they’re hit. Even the most meticulous hedging strategies could be thrown off track by double-digit inflation. 

Before the conflict broke out, some companies raised their annual inflation budgets. P&G increased its estimate by $400 million in January to a total of $2.8 billion, while Kimberly-Clark guided for higher inflation than analysts expected. Clorox (NYSE) Co. will announce its results on May 2. It stated in February that additional costs for fiscal year would amount to $500 million, an increase of the $350m it mentioned just three months ago. 

Lieberman wrote that costs are still rising at double-digit rates and it remains to be seen if companies will charge more to offset inflation. Investors will also hone in on firms’ pace of sales growth as some cracks emerge in consumer’s ability to cope with higher prices.

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