P&G's profits were lifted by strong sales of the premium skin product, SK-II

New York (AFP) - Procter & Gamble reported higher quarterly earnings on Friday, but cautioned that the uptick in sales would moderate as it faces increasing costs.

The consumer products giant, whose brands include Tide detergent and Bounty paper towels, projected sales in fiscal 2022 would increase by two to four percent, compared with the seven percent growth in the 12 months just ended.

P&G expects to spend $1.9 billion more in the coming year because of elevated commodity and freight costs, the company said in a press release.

Chief Executive David Taylor said on CNBC that the consumer products giant was seeing “very significant commodity pressure,” adding that “there will be the continued pandemic impacts on the consumers and supply chains.”

Still, in the company’s earnings statement Taylor said the company enjoys “strong momentum” and he expects another year of profit and sales growth “despite a challenging cost and operating environment.”

Net income in the quarter ending June 30 rose to $2.9 billion, up four percent from the same period of the prior year. Revenues rose seven percent to $18.9 billion.

One of the strongest categories was beauty, which benefited from higher pricing, and robust demand for high-end products like the “super-premium” SK-II skin care line.

P&G announced Thursday that Taylor would move to executive chairman on November 1, ceding the CEO role to Chief Operating Officer Jon Moeller, a longtime executive with the company.

Shares of P&G rose 1.4 percent to $141.39 in pre-market trading.