Iran war economy chaos with oil prices affecting soap sponsor . . .
Procter & Gamble warns of $1 billion profit hit in fiscal 2027 from higher oil prices
https://www.reuters.com/business/energy/pg-tops-estimates-beauty-products-demand-flags-hit-higher-input-cost-2026-04-24/
April 24, 2026
4:02 AM PDT Updated
U.S. consumer goods giant Procter & Gamble (PG.N), opens new tab on Friday warned of a roughly $1 billion post-tax hit to its fiscal 2027 profit from surging oil prices, joining a host of global companies flagging significant cost pressures from the Iran war.
The Pampers and Tide maker's estimated profit hit is among the highest outside of airlines, which rely heavily on oil for fuel.
"The noise, I would call it, from the commodity exposure is significant, as a billion dollars after tax is nothing to sneeze at from a headwind standpoint," said P&G finance chief Andre Schulten on a post-earnings call.
"We have a lot of work to do, to work through the supply chain side and the cost side."
The profit hit to P&G's fiscal year beginning July accounts for the impact of oil price jumping from $60 a barrel before the conflict to around $100 today on plastics and paper for packaging, as well as transportation charges, the company said.
"Inflation across food, energy, healthcare, and many other areas of spending has taken a toll on consumers and how they assess value. Recent geopolitical events have elevated this to a new level of concern," Schulten said.
P&G, whose total cost of goods sold in 2025 was $40.85 billion, also flagged a $150 million impact for the fourth quarter due to commodity-linked cost inflation, feedstock exposure and logistics disruption from the Middle East conflict.
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