The cost of doing business is on the rise as a snapback in global growth as the pandemic rounds the corner has sent commodities prices significantly higher.
Oil prices are up nearly 600% from a late April 2020 bottom. Copper prices have surged 95% during that same timespan. The average price of gas in the U.S. since late April 2020 has gone from about $1.74 to $3.00. Not helping matters for companies are the new costs in businesses to keep workers safe from the ongoing pandemic.
Corporate America is now asking consumers to foot the bill in an effort to protect their bottom lines from inflation and COVID-19 pandemic costs, and their stock prices.
Here are several of the biggest consumer brands that have said recently they have raised prices or are about to do so thanks to rising inflation.
Tin foil won’t be getting cheaper anytime soon, at least tin foil from Reynolds.
“We expect 2021 to be another year of record net revenues and volume and are using all available tools, including additional pricing and expanded Reyvolution cost savings, in our plans to offset increased commodity, logistics and related costs,” said Reynolds (REYN) CFO Michael Graham on the company’s latest earnings report. “Our first round of price increases went into effect as planned, and a second round is underway with plans for a third round in the third quarter. However, there is a difference between the impact of recent cost increases and the timing of related price increases. We therefore expect considerable margin pressure in the second quarter, followed by sequential margin improvement in the third and fourth quarters as higher prices go into effect.”
Procter & Gamble
Time to budget a little more for personal care products.
The maker of Tide laundry detergent and Gillette razors said in its fiscal third quarter earnings release it would begin to hike prices on baby care, feminine care and adult incontinence products in the United States. Price increases will range from mid- to high-single digit percentages. The hikes will go into effect in mid-September.
P&G Vice Chairman and COO Jon Moeller told Yahoo Finance Live the price increases will have a neutral impact to earnings, but were necessary given the cost increases the business is experiencing.
That kitchen remodel is likely to be costlier than you thought.
“We took price increases in every region of the world, and range from 5% to 12%,” Whirlpool (WHR) CFO Jim Peters told Yahoo Finance Live. “Those are driven by commodity cost increases, and it’s something we have done historically.”
Key commodities for Whirlpool have surged since March 2020 — steel and oil prices alone are up about 75% and 90%, respectively, alone over that span.
“Supply chain issues and cost of materials are the top concerns of members,” National Kitchen & Bath Association Bill Darcy told Yahoo Finance Live. “The long lead times and the price increases are significantly impacting our members, and certainly consumers.
Protecting your hands from a germy sneeze will also set you back some more money, too.
The Kleenex maker said on March 31 it will increase prices in the U.S. and Canada on the majority of its consumer products due to “significant” commodity cost inflation. The percentage increases will range from mid- to high-single digits and go into effect in June.
The most impacted will be baby and child care products, adult care products and Scott bathroom tissue.
Getting a great night’s sleep is going to cost a little more.
Tempur Sealy (TPX) Chairman and CEO Scott Thompson told Yahoo Finance Live the company took a new round of price increases on April 1 to combat higher steel and chemicals prices. Thompson didn’t disclose the degree of the price increase.
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