The US consumer goods giant Procter & Gamble plans to raise the prices of about a quarter of its products in the US by around five percent in the current fiscal year.
In the completed quarter through the end of June, net sales rose by 2 percent to $20.9 billion, slightly above analysts' expectations of $20.8 billion. Net profit was also above forecasts at $3.6 billion. Organic revenue — adjusted for currency exchange rates as well as acquisitions and sales — also increased by 2 percent, particularly supported by price increases in the shaving segment.
Nevertheless, the pressure remains high. The tariffs—net after taxes around $800 million—correspond to more than 1 percent of the group sales in the completed fiscal year of $84.3 billion. Although a new agreement between the USA and the EU reduces the planned tariffs on European imports from originally 30 to 15 percent, Schulten was cautious: "I take this with caution until the details are known.
Schulten also emphasized that relocating production closer to US consumers does not eliminate all risks: "Some ingredients and packaging are simply not available in the US." Tariffs would still be due on exports from the US to Canada.
Consumer demand is showing fluctuations. According to P&G, consumers in the USA and Europe are increasingly paying attention to price, buying large packages at warehouse sales or small units in discount formats more frequently. Price sensitivity is noticeably growing, says Schulten.
In the outlook, P&G expects organic sales growth of between zero and four percent in the current fiscal year – a wider range than usual and an indication of the volatile mix of inflation, geopolitical uncertainties, and consumer confidence.
A personnel change at the top provided additional conversation: CEO Jon Moeller will step down at the end of 2025. Shailesh Jejurikar, currently COO, is expected to lead the company thereafter. Moeller will remain Chairman and take on the role of Executive Chair.
