On Wednesday, Procter & Gamble Co beat quarterly sales and profit estimates, supported by price hikes on everything from Tide detergent to Head & Shoulders shampoo.

On Wednesday, shares of the company surged 2 per cent in premarket trading, as the company also maintained its full-year organic sales growth forecast. Demand for household consumer goods has dropped slower than products like apparel and electronics, as consumers prioritise spending on essential items.

However, with inflation at a 40-year high, some retailers are starting to push back on price hikes from Procter & Gamble and other companies. P&G stated average prices across its product lines surged 9 per cent in the quarter that ended September 30, while sales volumes declined 3 per cent. P&G said a strengthening dollar would eat into annual sales by six percentage points, compared with a previous forecast of a three percentage point hit.

The company further said it was expecting fiscal 2023 sales to decline 1 per cent to 3 per cent, compared with its last forecast of flat to 2 per cent growth. It said its full-year earnings would come at the low end of its previous guidance of flat to 4 per cent growth. On an adjusted basis, the company earned USD 1.57 per share on net sales of USD 20.61 billion.