Latest news with #TideEvo
Yahoo
24-04-2025
- Business
- Yahoo
P&G looks to raise prices as tariffs hit costs and force forecast cuts
By Jessica DiNapoli and Juveria Tabassum (Reuters) - Pampers maker Procter & Gamble said on Thursday it would raise prices on some products to cover the impact on input costs from the trade war and lowered its annual forecasts, as consumers cut back spending due to economic uncertainty. U.S. President Donald Trump's sweeping tariffs have roiled global markets and led to fears of a recession in the U.S., the biggest market for P&G, whose products include Tide detergent. "We will have to pull every lever we have in our arsenal to mitigate the impact of tariffs within our cost structure and P&L," said CFO Andre Schulten on a call with reporters. Pricing and cost cuts were the main levers, Schulten said, as changing raw material sourcing from China would be complex and difficult in the short term, mainly due to lack of options. Shares of P&G were down nearly 5% in early afternoon trading as the company also posted a bigger-than-expected fall in third-quarter revenue. P&G imports raw ingredients, packaging materials and some finished products into the U.S. from China, while the vast majority - roughly 90% - of what it sells is produced domestically, a company spokesperson told Reuters. China accounts for just over 10% of its import exposure, but the 145% tariff makes the impact more substantial, Schulten said, pegging the annual hit to its cost of goods at around $1 billion to $1.5 billion. Its cost of products sold was $40.85 billion in 2024. As sentiment takes a hit in the U.S. and global supply chains unravel, several companies have either cut or withdrawn their annual expectations. P&G, a bellwether for consumer goods demand, saw U.S. shoppers slow their spending in February and March. North America accounted for 52% of its net sales in 2024. It now expects total net sales for 2025 to be roughly in line with last year, compared with a prior target of 2% to 4% growth. FLEXING ITS PRICING POWER After raising prices significantly over the last few years, P&G executives had said they would rely less on the strategy to grow sales. The company raised prices by 1% in the third quarter, while volumes fell 1%. P&G said it would sell new products at higher price points and look to raise prices for some existing ones, while aiming to innovate across products such as its new Crest whitening toothpaste and Tide Evo detergent pods. "It comes down to how much of these costs are companies willing to pass on so that they can maintain their earnings versus how much the consumer is going to push back and erode the top line," said Don Nesbitt, senior portfolio manager at F/m Investments, which holds shares in P&G. P&G, whose products command a premium on the shelves of retailers like Walmart and Target, faces a growing threat from the stores' private label brands. Schulten said it was too early to speculate on how much pricing the world's biggest maker of household staples would take, and that it is now planning for its next fiscal year which begins in July. P&G would make the pricing decisions with its retail partners - like Walmart, Target and Amazon - in mind. Rival Reckitt on Wednesday posted a decline in sales volumes in Europe and North America, while Kleenex tissue maker Kimberly-Clark cut its annual profit forecast earlier this week. In contrast, fellow consumer goods bigwigs Nestle and Unilever topped quarterly sales expectations on higher prices for the former's packaged foods business and Unilever's top brands such as Dove soap and Vaseline. P&G expects annual core earnings per share in the range of $6.72 to $6.82, down from its prior target of $6.91 to $7.05. Its third-quarter net sales fell 2% to $19.78 billion, compared with expectation of a 0.44% drop, according to data compiled by LSEG, while adjusted earnings per share of $1.54 beat estimates by 1 cent. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
P&G's earnings forecast in spotlight as uncertainty plagues consumer spending
By Juveria Tabassum (Reuters) - Procter & Gamble's annual targets will be in focus when the consumer goods bellwether reports third-quarter results on Thursday, with some analysts expecting a forecast cut due to uncertainty around spending amid global trade tensions. U.S. President Donald Trump's reciprocal tariffs on several trading partners have roiled global markets and raised fears of global retaliation, a potential trade war, renewed inflation and an eventual recession in the United States. Consumer spending in several categories is expected to remain pressured this year, and for global consumer goods companies such as P&G the threat of even higher prices could affect demand. Smaller rival Kimberly-Clark lowered its annual profit target on Tuesday and warned that tit-for-tat tariffs could drive up the Kleenex maker's input costs. "The time has come for the majority of consumer staples companies to cut their earnings forecasts significantly ... investors are looking for visibility and can't find it in the most visible of sectors like consumer staples," RBC Capital Markets analyst Nik Modi said. While consumer staples have typically performed well during times of economic and market turmoil, more-frequently occurring exogenous shocks were leading to volatility in companies' results and weakening performance consistency for consumer staples, Modi added. In February, Procter & Gamble executives at an industry conference said the company was willing to adjust its short-term forecast as Trump's tariff policy created some pressure on moving raw materials and finished product across borders at a time when consumers were pulling back on spending. "With trends moderating across the U.S. and Europe ... we think hitting organic revenue and EPS guidance (for P&G) will prove to be difficult," UBS analyst Peter Grom said last week. The company in January maintained its fiscal 2025 forecasts of sales growth in the range of 2% to 4%, and annual core earnings between $6.91 and $7.05 per share. Still, P&G's extensive portfolio of about 80 brands, as well as its recent efforts in introducing new products, such as the Tide Evo detergent, and offering smaller pack sizes, could help provide some protection from weak spending, analysts have said. "Consumers may be quick to trade down on snacks or skip them altogether, but could be less likely to abandon grooming or personal care brands they've used for years," EMarketer analyst Blake Droesch said. P&G's third-quarter revenue is expected to drop 0.4% to $20.11 billion, while its earnings per share is expected to rise marginally to $1.53, according to data compiled by LSEG.
Reuters
23-04-2025
- Business
- Reuters
P&G's earnings forecast in spotlight as uncertainty plagues consumer spending
April 23 (Reuters) - Procter & Gamble's (PG.N), opens new tab annual targets will be in focus when the consumer goods bellwether reports third-quarter results on Thursday, with some analysts expecting a forecast cut due to uncertainty around spending amid global trade tensions. U.S. President Donald Trump's reciprocal tariffs on several trading partners have roiled global markets and raised fears of global retaliation, a potential trade war, renewed inflation and an eventual recession in the United States. Consumer spending in several categories is expected to remain pressured this year, and for global consumer goods companies such as P&G the threat of even higher prices could affect demand. Smaller rival Kimberly-Clark (KMB.N), opens new tab lowered its annual profit target on Tuesday and warned that tit-for-tat tariffs could drive up the Kleenex maker's input costs. "The time has come for the majority of consumer staples companies to cut their earnings forecasts significantly ... investors are looking for visibility and can't find it in the most visible of sectors like consumer staples," RBC Capital Markets analyst Nik Modi said. While consumer staples have typically performed well during times of economic and market turmoil, more-frequently occurring exogenous shocks were leading to volatility in companies' results and weakening performance consistency for consumer staples, Modi added. In February, Procter & Gamble executives at an industry conference said the company was willing to adjust its short-term forecast as Trump's tariff policy created some pressure on moving raw materials and finished product across borders at a time when consumers were pulling back on spending. "With trends moderating across the U.S. and Europe ... we think hitting organic revenue and EPS guidance (for P&G) will prove to be difficult," UBS analyst Peter Grom said last week. The company in January maintained its fiscal 2025 forecasts of sales growth in the range of 2% to 4%, and annual core earnings between $6.91 and $7.05 per share. Still, P&G's extensive portfolio of about 80 brands, as well as its recent efforts in introducing new products, such as the Tide Evo detergent, and offering smaller pack sizes, could help provide some protection from weak spending, analysts have said. "Consumers may be quick to trade down on snacks or skip them altogether, but could be less likely to abandon grooming or personal care brands they've used for years," EMarketer analyst Blake Droesch said. P&G's third-quarter revenue is expected to drop 0.4% to $20.11 billion, while its earnings per share is expected to rise marginally to $1.53, according to data compiled by LSEG.
Yahoo
23-04-2025
- Business
- Yahoo
P&G's earnings forecast in spotlight as uncertainty plagues consumer spending
By Juveria Tabassum (Reuters) - Procter & Gamble's annual targets will be in focus when the consumer goods bellwether reports third-quarter results on Thursday, with some analysts expecting a forecast cut due to uncertainty around spending amid global trade tensions. U.S. President Donald Trump's reciprocal tariffs on several trading partners have roiled global markets and raised fears of global retaliation, a potential trade war, renewed inflation and an eventual recession in the United States. Consumer spending in several categories is expected to remain pressured this year, and for global consumer goods companies such as P&G the threat of even higher prices could affect demand. Smaller rival Kimberly-Clark lowered its annual profit target on Tuesday and warned that tit-for-tat tariffs could drive up the Kleenex maker's input costs. "The time has come for the majority of consumer staples companies to cut their earnings forecasts significantly ... investors are looking for visibility and can't find it in the most visible of sectors like consumer staples," RBC Capital Markets analyst Nik Modi said. While consumer staples have typically performed well during times of economic and market turmoil, more-frequently occurring exogenous shocks were leading to volatility in companies' results and weakening performance consistency for consumer staples, Modi added. In February, Procter & Gamble executives at an industry conference said the company was willing to adjust its short-term forecast as Trump's tariff policy created some pressure on moving raw materials and finished product across borders at a time when consumers were pulling back on spending. "With trends moderating across the U.S. and Europe ... we think hitting organic revenue and EPS guidance (for P&G) will prove to be difficult," UBS analyst Peter Grom said last week. The company in January maintained its fiscal 2025 forecasts of sales growth in the range of 2% to 4%, and annual core earnings between $6.91 and $7.05 per share. Still, P&G's extensive portfolio of about 80 brands, as well as its recent efforts in introducing new products, such as the Tide Evo detergent, and offering smaller pack sizes, could help provide some protection from weak spending, analysts have said. "Consumers may be quick to trade down on snacks or skip them altogether, but could be less likely to abandon grooming or personal care brands they've used for years," EMarketer analyst Blake Droesch said. P&G's third-quarter revenue is expected to drop 0.4% to $20.11 billion, while its earnings per share is expected to rise marginally to $1.53, according to data compiled by LSEG. Sign in to access your portfolio
New York Times
22-04-2025
- Science
- New York Times
We Don't Like Laundry Detergent Sheets. But These Tiles Impressed Us.
Andrea Barnes/NYT Wirecutter We put Evo tiles through our typical laundry detergent tests. First, we test dissolvability in cold water. This test gives us an idea of how well a detergent will perform during cold-water washing, which is one of the most energy-efficient (and environmentally conscious) choices you can make when doing laundry. (Our top laundry detergent picks—powders, liquids, and pods—are all strong performers in cold water.) Tide Evo tiles passed the test, dissolving fully and quickly (within seconds) in 70 °F water. Tide Evo tiles dissolve within seconds of cold water hitting the washing-machine drum. Andrea Barnes/NYT Wirecutter To test stain removal, we use two industrial stain tests: a jersey-cotton stain monitor and a linen stain strip. These are soiled with an array of hard-to-clean substances, such as carbon black (a mixture of soot and mineral oil), wine, cocoa, pig blood, sebum (body oil), foundation, peat, grass, baby food, and turmeric. We added both the stain monitor and the stain strip to a 10-pound load of laundry. Then we tossed in a T-shirt stained with bacon grease and pepperoni pizza to evaluate odor removal. We washed this load with one Evo tile on a cold-water cycle. After the wash cycle ended, we removed the stain tests to air-dry, and we dried the rest of the load—including the shirt stained with bacon grease and pizza—in the dryer. After the tests dried, we compared them to the stain-test results of similar solid, single-dose detergents: Earth Breeze detergent sheets and Tide Pods Free & Gentle Laundry Detergent. We also folded the dried laundry load, paying close attention to the scent of the laundry itself and making notes of which odors lingered after laundering. Like pods or detergent tablets, Evo tiles can be thrown directly into the drum. Andrea Barnes/NYT Wirecutter Finally, we repeated our stain and odor protocol, but we used two Evo tiles to see whether doubling up would result in more-powerful cleaning. After an extra 30 minutes, the suds finally dissipated. Andrea Barnes/NYT Wirecutter Though stain removal was improved when we used two tiles, we don't recommend this method for very stained laundry. The suds from using two tiles filled the machine drum with a deluge of bubbles and lengthened the wash cycle. Instead, you're better off pretreating moderate to severe stains with a separate stain remover.
