Procter & Gamble On Thursday, the mixed quarterly results were reported as the demand for its products fell, giving a dimber outlook for the current quarter and said that the price could increase.
The company, who owns Tide and Charmin, reduced its forecast for core income per share for the entire financial year and for revenue, which is in its last quarter. Authorities quoted Consumer recession, New tariff And the company plans to invest back in its brands during the period of uncertainty as due to its trimming approach.
P&G already makes many products sold domesticly in America, but President Donald TrumpTariff is likely to increase some of its costs.
P&G CEO John Muler said on CNBC on Thursday, “There will be a possibility of pricing – tariffs are naturally inflation – but we are also looking after sourcing options.” “Squalk box.”
He said that the price hike bound by tariff will take place in the next financial year, which starts in July, incidentally when the “mutual” tariff of Trump administration is expected to grow. After a temporary expiry.
The company’s shares fell more than 4% on Thursday.
What the company said for the third quarter of its financial year here that based on a survey of analysts by LSEG compared to Wall Street: What was expected:
- earnings per share: $ 1.54 vs $ 1.53 expected
- Income: $ 19.78 billion vs $ 20.11 billion is expected
Pure sales fell 2% to $ 19.78 billion. The company’s biological sales, which snatches the acquisition, partition and foreign exchange, increased by 1%.
P&G’s volume fell 1% in the quarter. The volume excludes pricing, which makes it a more accurate reflection of demand than sales.
The “a more nervous consumer” was pulled back in the last two months of the trimester as a result of uncertainty, political environment and other factors around the tariff, CFO Andre Shultson said on the company’s call with the media.
“It is not irrational to see the consumer to ‘wait and see’ the attitude, and we looked down the traffic on retailers,” Shults said. “We saw that consumers are basically looking for value, online, in large box retail, migrating to club [retailers],
On a call with analysts, Shulten also highlighted the market instability and “all partitions and nationalist rhetoric, which we had seen worldwide” to motivate customers to spend something. However, the company has not yet seen any nationalist consumer behavior in Canada, Europe and China, he later clarified.
Shultson said that the current tariff would increase from $ 1 billion to $ 1.5 billion per year. The company will focus on pricing, productivity and innovation to address the impact in short -term, but will also consider formulation and sourcing changes, he said.
He said that P&G brands are still maintaining the strength of the market. Its volume in Europe has recently increased by 0.3%, and its American volume is stable, said Shults said.
P&G’s baby, Feminine and Family Care Division reported a decline of 2% in volume, the most decrease in its segment. All three parts of the business, which include pumpers diapers and bounty paper towels, shrink volumes during the quarter.
P&G’s health care and partitions of clothes and home care saw a decline in volume. Demand for its oral-care products, such as oral-be toothbrush and crest toothpaste, decreased during the quarter. So demanded your home care products, including cascade detergent and swifter MOP.
The company’s beauty segment, including Ole and SK-II, reported flat volume for the quarters. P&G stated that the volume declined in Greater China, its second largest market, although SK-II experienced double-digit growth in the region. America and China are closed in a tight-for-cut trade struggle With duties of triple-packs on imports, And according to China Shultain, P&G has more than just 10% of the total imports.
Overall, organic sales in Greater China fell 2% with an increase of 1% in North America.
“It will take time for China to recover and there will not be a straight line,” Shultan said on a call with analysts.
P&G’s grooming business, including Gillette and Venus razers, was the only section to report volume growth. Its volume stood up to 1%.
With a quarter in its financial year, P&G is now expecting flat sales growth for FY 2025, below the pre -forecast of 2% to 4% of revenue growth. The company cut its main earnings from $ 6.72 to $ 6.82 per share Outlook, below its previous perspective of $ 6.91 to $ 7.05.
P&G reported a year ago a company of $ 3.77 billion, a company of $ 3.77 billion, or $ 1.54 per share, $ 3.75 billion, or $ 1.52 per share.
– Russell Leung of CNBC contributed to this report.
