Higher crude prices will result in a US$150 million headwind in the current fiscal year for the maker of Tide detergent, Bounty paper towel and other staples, P&G said in its earnings press release.

P&G confirmed its annual forecast, but said it expects earnings per share “to be toward the lower end of the guidance range.”

Profits for the quarter ending March 31 were US$3.9 billion, up 4% from the year-ago period.

Revenues rose 7% to US$21.2 billion. All five product divisions scored sales growth, led by beauty, with 11%.

Chief financial officer Andre Schulten said the results showed the strength of P&G’s business continuity operations, “despite some force majeure declarations by our direct suppliers or by their upstream suppliers.”

Supply disruptions due to the Iran war, including the near-total shutdown of the Strait of Hormuz, have forced P&G to seek alternative sources of feedstocks, often resulting in higher shipping costs and sometimes product reformulations.

“We see some suppliers just not being able to supply at all,” Schulten said on a conference call with analysts.

“We see some manufacturing facilities that have been compromised by the war,” he said. “And so it’s not just the oil price, it’s also the availability of product and input costs.”

Schulten said the company was refraining so far from forecasting profits for fiscal year 2027, which begins July 1.

If Brent crude prices were to stay about US$100 a barrel for the year, it would add US$1.3 billion before tax or US$1 billion after tax versus oil prices in the mid-60s, he said.

P&G is also eyeing a potential tariff refund after the Supreme Court nullified some of President Donald Trump’s levies.

The company has about US$150 million in tariff potential refunds, but “how much of that is recoverable, we’ll find out,” Schulten said on the call.