Latest news with #consumer goods
Reuters
a day ago
- Business
- Reuters
P&G signals sluggish annual growth amid leadership change, tariffs
July 29 (Reuters) - Procter & Gamble (PG.N), opens new tab on Tuesday forecast annual results largely below Wall Street estimates in the face of cautious consumers, a day after the Tide parent named an insider as CEO to steer it through the tariff uncertainty. The muted expectations will likely pile pressure on Shailesh Jejurikar, who on Monday was named to the top post replacing Jon Moeller. Meanwhile, P&G, which topped fourth-quarter revenue and profit estimates on price hikes, will raise prices on about a quarter of its products in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump. The price hikes have been communicated to retailers such as Walmart (WMT.N), opens new tab and Target (TGT.N), opens new tab and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August. The comments from the world's largest consumer goods maker reinforce how consumers, particularly in the lower income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle (NESN.S), opens new tab said last week that consumers in North America remained weak. P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April. P&G expects fiscal 2026 core net earnings per share growth in the range of flat to up 4% to between $6.83 and $7.09, compared with estimates of a 3.49% growth to $6.99, according to estimates compiled by LSEG. The company expects total net sales for fiscal 2026 to grow between 1% to 5%, the mid-point of which was slightly below analysts' average estimate of a 3.09% rise to $86.80 billion. P&G began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity. The company's revenue rose 1.7% to $20.89 billion in the fourth quarter, compared with analysts' average estimate of a 1.38% rise to $20.82 billion. Prices rose 1% while volumes were flat year-over year, after having fallen about 1% in the prior quarter. The company reported earnings per share of $1.48 for the three months ended June 30, compared with estimates of $1.42. Its shares were up marginally in premarket trading. They have fallen about 6% so far this year.
Yahoo
a day ago
- Business
- Yahoo
P&G signals sluggish annual growth amid leadership change, tariffs
(Reuters) -Procter & Gamble on Tuesday forecast annual results largely below Wall Street estimates in the face of cautious consumers, a day after the Tide parent named an insider as CEO to steer it through the tariff uncertainty. The muted expectations will likely pile pressure on Shailesh Jejurikar, who on Monday was named to the top post replacing Jon Moeller. Meanwhile, P&G, which topped fourth-quarter revenue and profit estimates on price hikes, will raise prices on about a quarter of its products in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump. The price hikes have been communicated to retailers such as Walmart and Target and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August. The comments from the world's largest consumer goods maker reinforce how consumers, particularly in the lower income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle said last week that consumers in North America remained weak. P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April. P&G expects fiscal 2026 core net earnings per share growth in the range of flat to up 4% to between $6.83 and $7.09, compared with estimates of a 3.49% growth to $6.99, according to estimates compiled by LSEG. The company expects total net sales for fiscal 2026 to grow between 1% to 5%, the mid-point of which was slightly below analysts' average estimate of a 3.09% rise to $86.80 billion. P&G began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity. The company's revenue rose 1.7% to $20.89 billion in the fourth quarter, compared with analysts' average estimate of a 1.38% rise to $20.82 billion. Prices rose 1% while volumes were flat year-over year, after having fallen about 1% in the prior quarter. The company reported earnings per share of $1.48 for the three months ended June 30, compared with estimates of $1.42. Its shares were up marginally in premarket trading. They have fallen about 6% so far this year.
Yahoo
a day ago
- Business
- Yahoo
Valuation Stalls the Bull Case: P&G Cut to Neutral by JPMorgan
The Procter & Gamble Company (NYSE:PG) is one of the now. But not every analyst is ready to double down. On July 25, JPMorgan's Andrea Teixeira downgraded PG from Overweight to Neutral, cutting the price target from $178 to $170. The downgrade reflects weak category trends, limited margin upside, and lackluster revenue momentum. Teixeira noted that P&G's valuation already prices in its long-term strengths, leaving little near-term upside. Copyright: jetcityimage / 123RF Stock Photo This follows the company's announcement of a major restructuring plan involving the elimination of roughly 7,000 white-collar roles, about 6% of its global workforce, over the next two fiscal years. The move is aimed at flattening management layers, consolidating brand categories, and investing in automation and digital infrastructure. While the plan is expected to enhance long-term efficiency, analysts don't expect a near-term earnings boost, and the stock may remain rangebound until the benefits begin to materialize. Procter & Gamble is a consumer goods giant whose portfolio spans household staples like Tide, Pampers, Gillette, and Oral-B. Its defensive business model and pricing power have historically made it a safe haven during periods of geopolitical and economic instability, including trade wars. While we acknowledge the potential of PG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Competitive cricketer turned assistant brand manager is now heading a $368 billion giant. Meet P&G's new CEO Shailesh Jejurikar
Fortune 500 consumer goods giant Procter & Gamble is betting an operations veteran can shepherd the industry stalwart behind name brands such as Pampers, Old Spice, Pantene, and Dawn. Shailesh Jejurikar will take over for Jon Moeller next year, P&G announced on Monday. Procter & Gamble is elevating an operations veteran with global experience to lead the consumer goods behemoth as it navigates an ambitious workforce restructuring, tariffs, and geopolitical headwinds. The leadership shuffle comes a month after P&G announced it would cut 7,000 jobs, equivalent to about 15% of its non-manufacturing workforce. Chief operating officer Shailesh Jejurikar, 58, will officially take the reins on Jan. 1, 2026, the company announced on Monday. Current CEO Jon Moeller will transition to an executive chairman role, where he'll lead the board and advise Jejurikar, the company said. There's no timeline for Moeller in the executive chair seat; the P&G board will determine how long he'll stick around. P&G chief communications officer Damon Jones told Fortune Moeller leaves behind a strong track record and legacy at P&G. The company ranks 149 on the Fortune 500 and is 19th on the World's Most Admired Companies list. 'We thank Jon for his strategic leadership and guidance as he has played a pivotal role in designing and implementing P&G's integrated portfolio, superiority, productivity and organization strategy, as part of one of the most significant transformations in the company's history,' said Joe Jimenez, lead independent director on P&G's board. 'The company has continued to consistently deliver strong growth and value creation through Jon's steady leadership as CEO. A strong plan is in place for sustained success and now is the time to transition to Shailesh as CEO. We are fortunate and grateful to have Jon continue as Executive Chairman.' Jejurikar has served as COO since 2021 and previously held the role of chief executive of global fabric and home care. From 2016 to 2021, Jejurikar was the executive sponsor of global sustainability at P&G, where he led the integration of the company's sustainability goals into business operations with a focus on positive impact on environment and society while creating value for shareholders, his LinkedIn states. P&G will pay Jejurikar $1.6 million in salary with a potential bonus valued at $3.2 million. The board awarded him long-term equity valued at $14 million, evenly split between performance shares and long-term incentive awards. Last year, Jejurikar made $10 million as COO, while Moller's total compensation was valued at $23 million. From Head Boy to CEO P&G was founded in 1837 by English-born candlemaker William Procter and Irish-born soap maker James Gamble. Other than a brief stint between 1999 and 2000 when P&G was led by Netherlands-born Durk Jager, Jejurikar—a naturalized citizen—will be the second CEO born outside the U.S. to lead the company. His rise to the top at P&G came after a childhood spent in India. Jejurikar told the P&G Alumni podcast in 2023 he started his schooling in an area outside Mumbai, which he described as being 'pretty much in the middle of nowhere.' The nearest school was a 45-minute drive away, he said. He moved to Hyderabad in eighth grade and started boarding school as a junior. Jejurikar said his high school years in Hyderabad helped him really find himself. He discovered cricket, a sport he excelled at and played competitively every Sunday. In 12th grade, he was named head boy of the school, which offered him a real chance at leadership. Jejurikar said one of his main life lessons came during his time as head boy. Students usually woke up in the morning, went to PE, came back to their dorms and showered before going to a study hour. As head boy, it was Jejurkar's job to make sure everyone's rooms were in order and beds were made. He typically made his bed every morning before he left for PE, but he was rushing one day and forgot. As he was checking other students' rooms to make sure they had tidied up, he realized he had forgotten to make his own bed. Jejurikar said he eventually realized his chemistry teacher had discovered the mistake, made the bed, and never mentioned a word about it to Jejurikar—no comment, no lecture, nothing. 'It left me with the biggest lesson, Jejurikar said. 'What I took away from that was never to ask anyone to do something I wouldn't do myself.' Jejurikar went to college in Bombay and then got his MBA from the Indian Institute of Management in Lucknow. P&G hired him as an assistant brand manager in 1989, and he has worked for the company in various cities all over the world in the decades since. Grow Your Own CEO P&G famously employs a 'build from within' culture and in its 174-year history has never hired a CEO from outside its own ranks. Executives with a 30-year track record at the company are more the rule rather than the exception, P&G has said. Former superstar CEO A.G. Lafley, who took over after Jager stepped aside less than two years into the role, served from 2000 to 2009 before Bob McDonald succeeded him. McDonald navigated the business through the global financial crisis and in 2013, the P&G board brought back Lafley for a second act as a boomerang CEO, rather than look outside. One of Lafley's main priorities after he came back for a second stint was to focus the board on succession planning for his replacement. He passed the baton in 2015 to David Taylor, who served as CEO from 2015 to 2021, and as executive chairman from 2021 to 2022. The restructuring plan Jejurikar is inheriting involves exiting certain brands, divestitures, and market exits, the company explained in a series of slides presented at the Deutsche Bank Consumer Conference in Paris last month. 'I am honored to serve as P&G's CEO,' said Jejurikar in a company statement. 'P&G people, our brands, and our capabilities in innovation and operational excellence fuel my confidence for a future of sustained growth and value creation.' 'It has been an honor to serve as CEO of P&G, and I am incredibly proud of the value created by the people of P&G through an integrated strategy that is being executed with excellence,' said Moeller. 'I look forward to supporting Shailesh and the entire team as they continue to improve the performance and value of P&G brands and categories to win with consumers and customers around the world.' This story was originally featured on 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
Reuters
2 days ago
- Business
- Reuters
Procter & Gamble replaces CEO Moeller with COO and long-time executive Jejurikar
July 28 (Reuters) - Procter & Gamble (PG.N), opens new tab CEO Jon Moeller is stepping away from the top job after four years in the role, and the consumer goods giant said he would be succeeded by Chief Operating Officer Shailesh Jejurikar. Moeller will become executive chairman and "provide advice and counsel to the CEO on company matters," P&G said in a statement on Monday, a day before it was scheduled to report its quarterly results. The company did not disclose the reason for the change in leadership in its statement, but P&G chief communications officer Damon Jones told Reuters Moeller's departure was part of a planned and orderly transition made by the board. There were no health concerns leading to Moeller's departure, he said. The Cincinnati, Ohio-based company has a history of relatively short CEO terms, dating back to the mid-1990s. Moeller's predecessor David Taylor was CEO for six years, two of which were during the COVID pandemic when consumer goods companies faced product shortages and supply chain snags. Taylor then served as executive chairman of the board. Under Moeller, the company navigated a post-pandemic sales boom, as well as rising expenses and sticky inflation. P&G shares gained roughly 13% during his four-year tenure, in line with the S&P 500 index. The company, which makes Pampers diapers and Head & Shoulders shampoo, in April warned of higher product prices due to an increase in input costs from the trade war at a time of weakening consumer spending. Its stock is down about 6% so far this year. In June, the company said it would cut 7,000 jobs over the next two years and exit some product categories and brands in certain markets, including some potential divestitures, as part of a broader two-year restructuring plan. "It might not mean much to the outlook since they're promoting from within," said Brian Jacobsen, chief economist at Annex Wealth Management, which holds P&G shares. "This could be more like the passing of the baton in a long race rather than shaking things up." Jejurikar's appointment, effective January 1, 2026, keeps up with P&G's preference for naming internal candidates for the top job. Moeller had also risen through the ranks before becoming the COO and then CEO of the company. The board has nominated Jejurikar as a director at the annual shareholder meeting in October 2025. Jejurikar has held roles across multiple P&G businesses, including Health & Beauty Care and P&G Professional. Prior to his current role, he was the head of P&G's Fabric & Home Care, which includes brands such as Tide, Ariel and Downy.
