Latest news with #JonMoeller
Yahoo
05-06-2025
- Business
- Yahoo
Why Tide maker Procter & Gamble is slashing 7,000 jobs
Procter & Gamble (PG) executives know how to do a few things very well. One is to create new versions of Tide detergent and Gillette razors that keep shoppers coming back to try them, often at a higher price. Another is to look under every rock to find internal cost savings — especially in times like today, when consumers are pulling back and tariff-related costs are on the rise. To that end, P&G said Thursday it would slash 7,000 jobs, or about 6% of its total workforce, over the next two years. The consumer products giant has about 108,000 employees worldwide. The restructuring decision, aired by company execs at a Deutsche Bank conference in Paris, comes on the heels of mixed quarterly results in late April. The company missed expectations on net sales and organic sales growth for the first quarter. Looking ahead, P&G joined other consumer goods leaders in buckling a bit under tariff-related economic headwinds. The company cut its full-year sales and EPS outlooks, citing pressured consumers and cost uncertainty. "We expect uncertainty to continue," P&G CEO Jon Moeller told Yahoo Finance at the time (watch above). While consumers aren't trading down to cheaper products, they are shifting behaviors to save money, Moeller said. For example, P&G is seeing them do fewer laundry loads each week as a means to conserve detergent. Since P&G's earnings report, Yahoo Finance data shows analysts have been reducing their EPS estimates on the company for the next two quarters. Shares have dropped 1.1% since the results on April 24, under-performing the Dow Jones Industrial Average's (^DJI) 8.35 gain and the S&P 500's (^GSPC) 13% advance. The stock was little changed in pre-market trading on Thursday after the news. "Procter's 3Q results and 4Q guide-down confirmed that the slowdown in the U.S. ─ where category volumes ran flat in the four weeks ending April 6, ─ will likely persist for another couple of quarters and that the slowdown has already extended into Europe, particularly France," warned EvercoreISI analyst Robert Ottenstein in a note. "A China bottoming but not recovering yet leaves Procter operating under tougher consumer environments in all its 'focus' markets or 80% of sales. Moreover, $1.0-1.5 billion in potential tariffs-related costs add risk to pre-release consensus F2026 EPS of $7.27, or 8% growth against a reduced F2025 EPS of $6.72-6.82," Ottenstein added. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
Procter & Gamble sees lower sales, higher prices amid Trump trade wars
Procter & Gamble said consumers in the U.S. and Europe pulled back on spending in March amid economic uncertainty as President Donald Trump began his trade wars, prompting the company to lower its sales outlook for the year. The Cincinnati-based consumer products giant reported its results for the January-March quarter last week, posting a $3.8 billion profit on sales of $19.8 billion. Its organic sales, which exclude foreign exchange impact, were up a modest 1% as consumers cut spending. 2025 economic outlook: Consumers worried about tariffs are pulling back on spending P&G now forecasts its annual sales growth to be flat compared with its previous guidance, calling for an increase of 2% to 4%. P&G officials said tariffs had a muted impact on its manufacturing operations because it makes most of its products where it sells them, or nearby, but consumers were spending less amid economic uncertainty. CEO Jon Moeller and other company executives said the company is evaluating what longer-term impacts tariffs will have, but higher prices will likely result. 'There will likely be pricing − tariffs are inherently inflationary − but we're also looking at sourcing options,' Moeller said on CNBC's 'Squawk Box' on April 25. In a conference call with journalists, Chief Financial Officer Andre Schulten said the direct impact of tariffs on costs was relatively "benign," between $100 million and $160 million, which would cost the company roughly $1 billion to $1.5 billion a year if they remained in effect. The company's annual costs for the materials it puts into the products it makes are more than $40 billion a year. This article originally appeared on Cincinnati Enquirer: Procter & Gamble consumers startled by trade wars, cuts sales forecast Sign in to access your portfolio
Business Insider
27-04-2025
- Business
- Business Insider
Cost of Tariffs to Pass-through to Consumers as Prices Rise Across the Board
CEOs across industries are warning that prices on everyday items from candy bars to cars will soon climb higher as companies pass on tariff-related costs to consumers. These price hikes threaten to slow consumer spending and fuel inflation, creating political challenges for President Trump despite his recent claims that 'gas and grocery prices are WAY DOWN.' Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Companies Announce Price Hikes 'Tariffs are inherently inflationary,' Procter & Gamble (PG) CEO Jon Moeller told CNBC as the consumer goods giant estimated that current and proposed tariffs could add between $1 billion and $1.5 billion to its annual costs. P&G plans to counter these expenses by raising prices on its products. They're not alone. Unilever (UL) and Nestle (NSRGY) have already started hiking prices to address rising commodity costs, with both companies signaling more increases if tariffs push expenses even higher. Some companies are taking more subtle approaches. PepsiCo (PEP) is offering smaller versions of popular items at similar price points, effectively increasing the per-unit cost for consumers. Meanwhile, automakers, including Ford (F), are preparing price hikes on vehicles rolling off assembly lines next month if Trump doesn't deliver on hinted tariff relief. Tariff Impact on Product Categories The impact of tariffs varies significantly across product categories. Clothing, shoes, and textiles are seeing some of the steepest increases, with prices rising 10-20% and apparel costs expected to climb up to 17% overall. Due to tariffs, food prices are up about 2.8%, with fresh produce increasing 2.2%. Electronics face variable price hikes, while new cars could see a $4,000-$10,000 increase depending on their origin. Not all companies are rushing to pass costs along. Tractor Supply Co. (TSCO) executives said they're holding off on consumer price increases despite vendor hikes. 'There's too much uncertainty,' explained CEO Hal Lawton. 'Once there's greater certainty, then we look forward to having very productive conversations with our vendor partners.' Economic Impact The economic outlook is concerning. According to University of Michigan data, consumers' inflation expectations have soared to multi-decade highs. The average American household could face approximately $3,800 in annual purchasing power loss due to tariffs and retaliatory measures from other countries, with lower-income families feeling the most strain. Federal Reserve officials are watching closely. While Fed Governor Christopher Waller believes the inflation impact will be temporary, many of his colleagues are more concerned about persistent price pressures. With U.S. retail sales rising in March—partly due to consumers rushing purchases ahead of tariff implementation—economists now expect Americans to pull back as prices climb and job markets weaken, amplifying recession fears and creating continued uncertainty for both businesses and shoppers in the months ahead.
Fibre2Fashion
26-04-2025
- Business
- Fibre2Fashion
US' P&G reports 2% dip in Q3 FY25 sales, maintains growth outlook
American consumer goods giant Procter & Gamble (P&G) has reported net sales of $19.8 billion in the third quarter (Q3) of fiscal 2025 (FY25) ended March 31, marking a 2 per cent decline year-over-year (YoY). However, organic sales—which exclude the effects of foreign exchange, acquisitions, and divestitures—rose by 1 per cent YoY. The reported gross margin in Q3 FY25 decreased 20 basis points (bps), and core gross margin for the quarter decreased 30 bps versus the prior year and on a currency-neutral basis decreased 10 bps. Procter & Gamble (P&G) has reported Q3 FY25 net sales of $19.8 billion, down 2 per cent YoY, while organic sales rose 1 per cent. Diluted and core EPS grew 1 per cent to $1.54. Gross margin declined, impacted by unfavourable mix and costs. P&G forecasts flat all-in sales and 2 per cent organic sales growth for Q4, and 2-4 per cent FY25 core EPS growth. Benefits from gross productivity savings of 160 bps and increased pricing of 30 bps were more than fully offset by 120 bps of unfavourable mix, 40 bps of product reinvestments, 30 bps of unfavourable commodity costs and 10 bps of rounding and other items. The diluted and core net earnings per share (EPS) were $1.54, an increase of 1 per cent versus prior year. Baby, Feminine and Family Care segment organic sales decreased one per cent YoY. Baby care organic sales decreased low single digits due to volume declines, partially offset by favourable geographic and product mix. Feminine care organic sales remained unchanged as favourable geographic mix was offset by volume declines. Family Care organic sales decreased low single digits driven by volume declines, unfavourable product mix and merchandising investments. 'We delivered modest organic sales and EPS growth this quarter in a challenging and volatile consumer and geopolitical environment,' said Jon Moeller, chairman of the board, president and chief executive officer (CEO) at P&G . 'We are making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete. We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority—across product performance, packaging, brand communication, retail execution and consumer and customer value—productivity, constructive disruption, and an agile and accountable organisation. We are maintaining investments in superior innovation across price tiers to improve value for consumers and drive category growth.' For Q2 FY25, P&G expects all-in sales to remain consistent with the prior year, with organic sales projected to grow by approximately two per cent YoY. The company updated FY25 diluted net earnings per share (EPS) growth guidance to be in the range of 6 to 8 per cent. The company now expects FY25 core EPS growth to be in the range of $6.72 to $6.82 per share, which equates to 2 to 4 per cent YoY growth. P&G now expects capital spending to be in the range of 4 to 5 per cent of FY25 net sales. Fibre2Fashion News Desk (SG)
Yahoo
25-04-2025
- Business
- Yahoo
Procter & Gamble Trims Outlook, Signals Price Hikes as Tariffs Weigh on Growth
Procter & Gamble (PG, Financials) on Thursday reported third-quarter earnings that narrowly topped analyst estimates but missed on revenue, prompting the company to revise its full-year outlook downward amid rising costs tied to tariffs and shifting consumer behavior. The maker of household brands like Tide, Gillette and Pampers said net income for the quarter was $3.77 billion, or $1.54 per share, compared to $3.75 billion, or $1.52 per share, a year earlier. Analysts surveyed by LSEG expected earnings of $1.53 per share. Revenue declined 2% year over year to $19.78 billion, falling short of the $20.11 billion expected. Company executives said the results reflect a softening demand environment, particularly in the last two months of the quarter, as consumers became more cautious and gravitated toward discount retailers and larger pack sizes. Volume, which excludes the impact of pricing, fell 1% across the board. In a CNBC interview, Chief Executive Jon Moeller said the company would likely raise prices starting in the next fiscal year, citing the inflationary impact of the Trump administration's new reciprocal tariffs. These duties are expected to rise in July following a temporary suspension. Chief Financial Officer Andre Schulten estimated the annual cost impact of tariffs would range between $1 billion and $1.5 billion. In response, the company plans to adjust its sourcing strategies and product formulations while continuing to invest in brand development. The updated full-year guidance now calls for flat revenue growth, down from a prior forecast of 2% to 4%. Core earnings per share are expected to come in between $6.72 and $6.82, compared to a previously forecast range of $6.91 to $7.05. By segment, baby, feminine and family care saw the steepest drop in volume at 2%, while health-care and fabric and home-care segments each declined by 1%. The company's grooming division, which includes Gillette and Venus products, was the only unit to post volume growth, increasing 1%. Organic sales in Greater China declined 2%, largely due to weakened demand despite double-digit growth in its SK-II skincare brand. The company said China represents just over 10% of its imports and remains exposed to ongoing trade tensions with the United States. P&G shares fell more than 4% following the announcement. This article first appeared on GuruFocus. Sign in to access your portfolio
