Investing.com – Procter & Gamble stock (NYSE:) traded 2% weaker in Tuesday’s premarket as the company repeated its annual profit forecast while warning of higher commodity and transportation expenses.

Ariel, the maker of Gillette razors and detergents for men and women, expects to reduce its net profit by $2.3 billion in commodity and freight costs during the current fiscal year.

Producers have had to pay more for raw materials due to higher prices for farm commodities and metals. Pricier crude not only raises transportation costs but it also means dearer chemicals that go into making P&G’s cleaning agents, plastics, packaging and other derivatives.

P&G expects 2022 all-in sales as well as organic sales growth of 3% at the midpoint of its guidance range.

In the first quarter, net sales increased 5% to $20.3billion. Organic sales were higher by 4%, driven by a 2% increase in volumes, P&G Chairman, President and Chief Executive Officer David Taylor said. The price hikes contributed to 1%. Andre Schulten, CFO of the Wall Street Journal stated that he anticipates passing more price increases on to customers over the next few weeks.

The adjusted earnings per share were $1.61 Both sales as well as profit exceeded expectations.