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P&G plans to raise prices for Tide and other brands

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Yahoo Finance Live anchors discuss Procter & Gamble's second quarter earnings as well as the company's initiative to increase prices for household cleaning and personal health care products.

Video transcript

JULIE HYMAN: Inflation, of course, is the word on everyone's lips. We heard President Biden talk about it last night. And it's also something, Brian Sozzi, that you talked about with Jon Moeller, the CEO of Procter & Gamble, because the company is raising prices.

BRIAN SOZZI: Yeah, a reminder to all new investors that are just now navigating onto our platform for one thing or another-- earnings day for a publicly traded company does not actually end on earnings day. You know, it really behooves you as an investor to just mind the earnings call transcript for potential nuggets. It could mean make or break for your investments in that particular company for the weeks and months to come.

And I'm digging-- I've been digging into the P&G earnings call transcript, and they called out-- in mid-December, they announced price increases to their retail partners that will go into effect on February 28. So if you buy a lot of household cleaning products, save that date, because on February 28, it will cost more to buy Tide, Gain, Downy, Bounce, and Unstoppables. Those are all cleaning products made by P&G.

Now, P&G also said on the call that they are about-- they just announced this week price increases for their personal health care products. And some of these brands include, according to their site, the likes of Metamucil-- that is owned by P&G-- Vicks, and, yes, Pepto-Bismol. Now, we talked to P&G's new CEO Jon Moeller about inflation and if they're going to push through more price hikes. Here's what he told us.

JON MOELLER: We've announced price increases in the majority-- I think 9 out of 10 categories. Some of those price increases have not yet come to the shelf. They haven't yet come to market. So we're going to work through that before we take the next step.

BRIAN SOZZI: Do you see any signs we are nearing peak inflation, just from your standpoint and your business?

JON MOELLER: There are some commodities that are starting to modestly roll over, which is encouraging. There is capacity being added to some of the input supply chains, which is encouraging. On the other hand, in markets like labor and transportation, I don't expect any near-term decreases.

BRIAN SOZZI: And, Julie, P&G shares finished yesterday up close to 5%. That is a strong move for consumer staples stock. We're seeing the stock up another 1% here, I would argue in large part because they have not really seen any resistance to these price increases.

So you take those price increases, you bolt it onto the fact that, perhaps-- perhaps-- inflation is starting to cool a little bit in some categories for P&G. And over the next 12 months, this company could show some pretty solid bottom line results or profits.

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