Sales up at Procter & Gamble but Trump's tariffs to bite

Times

17 hours ago

The world's largest consumer goods company has warned of a 'volatile' trading environment even as quarterly sales narrowly beat market expectations.
Procter & Gamble said fourth-quarter net sales grew 2 per cent to $20.9 billion, marginally ahead of analysts' forecasts. Annual net sales remained broadly level at $84 billion as higher pricing was offset by a 1 per cent decline from 'unfavourable exchange impacts'.
However, the company, which owns brands including Head & Shoulders, Gillette and Pampers, gave a more downbeat outlook for the year ahead as it priced in an added $1 billion in pre-tax costs from US tariffs.
Procter & Gamble forecast total net sales growth for the 2026 financial year of between 1 and 5 per cent, marginally below analysts' forecasts.
The company is grappling with global headwinds including China's economic slowdown and US President Trump's trade policy. In June the company, based in Cincinnati, Ohio, said that it would cut 7,000 office-based roles over the next two years, about 15 per cent of its non-manufacturing workforce, as it looks to streamline operations and reduce costs amid heightened consumer caution.
Shares have fallen nearly 8 per cent this year to date and dipped a further 0.28 per cent after markets opened in the US.
Jon Moeller, chief executive, said: 'We grew sales and profit in fiscal 2025 and returned high levels of cash to share-owners in a dynamic, difficult and volatile environment.'
He added that the company had 'strong plans in place to continue to deliver for all stakeholders in the current environment'.
This includes raising prices on some products to counter the impact of Trump's tariffs, which forced the company into cutting full-year earnings and sales guidance in April as it warned of drawn-out uncertainty.
Procter & Gamble's annual results were overshadowed by a surprise announcement on Monday that Jon Moeller would be stepping down from the top job after four year to be replaced by operating chief Shailesh Jejurikar.
The India-born businessman, 58, will take up the position at the turn of the year, with Moeller becoming executive chairman.
Jejurikar joined Procter & Gamble in 1989 and has held leadership roles across divisions including fabric and home care, which owns Tide, Febreze and Ariel. His appointment continues a trend of the company hiring insiders as chief executive.
On a quarterly basis, organic sales grew in all five of its divisions, which include beauty, grooming, health care, baby, feminine and family care and fabric and home care. Its beauty division, which owns Pantene and Olay, rose 1 per cent year-on-year despite being impacted by a decline in volumes in hair care in North America and greater China.
Founded in 1837 by the candlemaker William Procter and soap industrialist James Gamble, Procter & Gamble has grown to a market capitalisation of about $365 billion. It employs 108,000 people worldwide, with its largest operations in North America, Europe and greater China.
The conglomerate returned about $16 billion to shareholders in 2025, including $9.9 billion in dividend payments, according to Tuesday's statement.
An increase in the dividend in April marked the 69th consecutive year that Procter & Gamble has increased payouts for its investors. Looking ahead, it anticipates dividends of about $10 billion in fiscal 2026.