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# P&G CFO: 'No Way To Recover This Level Of Commodity Pressure Without Pricing'
- URL: https://www.bullished.co/p-and-g-cfo-no-way-to-recover-this-level-of-commodity-pressure-without-pricing-d0797d4c/
- Published: 2026-10-22T14:11:10.000Z
- Updated: 2026-10-23T12:54:37.000Z
- Description: Andre Schulten put the oil-driven cost hit at about $1.4 billion after tax and would not say whether P&G will raise prices.
- Author: Matteo Parrino
- Tags: Earnings, PG, Industry: Consumer Staples

[Procter & Gamble](https://www.bullished.co/tag/pg/) CFO Andre Schulten said on the company's first-quarter earnings call that "there is no way to recover this level of commodity pressure without pricing," as the cost headwind in the company's outlook reached [about $1.4 billion](https://www.theglobeandmail.com/business/article-pg-first-quarter-results-commodity-costs-profit-and-revenue-estimates/?ref=bullished.co) after tax. He would not say whether P&G will raise its own prices.

## Three levers, and a refusal on pricing

Asked by a Morgan Stanley analyst how pricing fits against the cost surge, Schulten said recovery will take three things: record productivity, "pricing with innovation," and time. The momentum P&G is building, he said, gives it confidence to price with innovation.

He called it "not a projection, just a fact" that the industry is generally pricing up at this level of cost pressure. He added that this was a fact of the past and need not hold in the future.

Pressed by a JPMorgan analyst on negotiations with retailers, he said he "won't announce pricing in any way, shape, or form." He said only that innovation is generally timed with modular resets.

P&G, which sells daily-use branded products in about 180 countries and territories, delivered about $500 million to $550 million of pretax productivity savings in the quarter, against $2.8 billion last year. Schulten said savings usually run heavier in the back half.

## The oil bill grows from July

P&G reiterated its [core earnings guidance](https://www.cnbc.com/2026/10/22/procter-gamble-pg-q1-2027-earnings.html?ref=bullished.co) of $6.89 to $7.11 a share, growth of 0% to 3%. The outlook assumes Brent crude at $100 a barrel. Because high oil prices have lasted, Schulten said, the company expects materially higher cost headwinds in the second quarter and the second half of fiscal 2027.

Combined input costs and items below the operating line now total a roughly $1.9 billion after-tax hit, or 79 cents a share. That compares with 56 cents a share in the July call. Globe and Mail reported the cost estimate [rose from US$1 billion](https://www.theglobeandmail.com/business/article-pg-first-quarter-results-commodity-costs-profit-and-revenue-estimates/?ref=bullished.co).

The first quarter carried only a 5% earnings headwind, against 8% projected for the year. Schulten called that a "one-timer" because costs flowed through only partly, and he said oil above $110, where it stood that morning, would add to the headwind.

Asked by a UBS analyst about timing, he said the $100-a-barrel cost should flow through in the second quarter. Oil at $113 means more in the third and fourth, when P&G has "more time to react."

## Strong top line, shares up

[Organic sales rose](https://finance.yahoo.com/markets/stocks/article/pg-beats-estimates-as-price-hikes-havent-hurt-demand-yet-111851559.html?ref=bullished.co) 4.0%, with volume up 2.4 points and pricing up 0.4 points. Core earnings per share were $2\. P&G returned $3.9 billion to shareholders in the quarter.

P&G shares rose 5.55% to $165.55 in Thursday trading, giving the company a market value of $364.3 billion.

Schulten said he is confident P&G will land within the earnings range, but not where in it. "It's one quarter," he said. He expects organic sales growth of about 3% in the first half, with acceleration after that.

P&G holds its investor day on November 19, where Schulten said executives will go deeper on the long-term transformation.

### Sources

- [Procter & Gamble (PG) Q1 2027 earnings](https://www.cnbc.com/2026/10/22/procter-gamble-pg-q1-2027-earnings.html?ref=bullished.co) — CNBC
- [Procter & Gamble’s Sales Offset Rising Fuel Costs - WSJ](https://www.wsj.com/business/earnings/procter-gambles-sales-offset-rising-fuel-costs-463656a0?ref=bullished.co) — The Wall Street Journal
- [P&G beats estimates as price hikes haven't hurt demand yet](https://finance.yahoo.com/markets/stocks/article/pg-beats-estimates-as-price-hikes-havent-hurt-demand-yet-111851559.html?ref=bullished.co) — Yahoo Finance
- [Procter & Gamble Stock Is Up 11% This Year. Is It Still a Buy Ahead of Earnings?](https://www.morningstar.com/stocks/procter-gamble-stock-is-up-11-this-year-is-it-still-buy-ahead-earnings?ref=bullished.co) — morningstar.com
- [P&G tops revenue estimates, expects bigger annual profit hit from commodity costs - The Globe and Mail](https://www.theglobeandmail.com/business/article-pg-first-quarter-results-commodity-costs-profit-and-revenue-estimates/?ref=bullished.co) — theglobeandmail.com

### More on Procter & Gamble

- [P&G Paid $3.9 Billion Cash For Thorne With Short-Term Debt Up To $17 Billion](https://www.bullished.co/p-and-g-paid-3-9-billion-cash-for-thorne-with-short-term-debt-up-to-17-billion-10b155d4/)
- [P&G Grows Organic Sales 4.0% In First Quarter, Its Fastest In Five Quarters, But Warns Costs Will Rise](https://www.bullished.co/p-and-g-grows-organic-sales-4-0-in-first-quarter-its-fastest-in-five-quarters-but-warns-80b26037/)
- [P&G Sales Rise 4% To $23.3 Billion, But Commodity Costs Cut Core Gross Margin 150 Basis Points](https://www.bullished.co/p-and-g-sales-rise-4-to-23-3-billion-but-commodity-costs-cut-core-gross-margin-150-basis-ee6cdae3/)

[All Procter & Gamble (PG) coverage →](https://www.bullished.co/tag/pg/)