On Tuesday, Procter & Gamble cautioned that increased commodity and freight costs will eat into profitability, but it maintained its full-year expectations, betting on higher prices and sustained demand for personal care products.

In premarket trading, shares of the Tide detergent company slid 1.4% to $140.32.

As the pandemic's stop-and-start nature, personnel shortages, and crowded shipping ports impair global supply chains, the business now estimates a hit of roughly $2.3 billion from commodities and freight expenses this fiscal year, up from a previous forecast of around $1.9 billion.

Most of P&G's commodities basket had considerable input costs, including expenses for pulp, resin, and polypropylene.

Unilever and Reckitt Benckiser Group, which both report earnings on Thursday, have warned that profit margins will be squeezed this year.

P&G's revenues increased by 5% to $20.34 billion in the first quarter, thanks to price increases due to rising expenses and an increase in demand for personal care products encouraged by consumers returning to social gatherings.

According to IBES data, analysts predicted sales of $19.91 billion.

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Organic sales increased by 4% in the quarter, while volume sales increased by 2%.

P&G's net income fell 4% to $4.11 billion, or $1.61 per share, topping analysts' expectations of $1.59 per share.

Higher commodity and freight costs are expected to slash 90 cents off Gillette's full-year profits per share, compared to a previous prediction of a 70-cent impact.

The corporation, on the other hand, kept its forecast for annual core earnings per share growth of 3% to 6%.