To reduce costs that Procter & Gamble has been subject to as a result of the tariffs that have been imposed by US President Donald Trump, Procter &, Gamble has stated that starting this month, it will need to raise prices on a quarter of the goods it sells in the US.
The largest consumer goods manufacturer in the world named Shailesh Jejurikar as its new chief executive officer on Tuesday in a move that will help the industry navigate tariff-driven  uncertainty.
A spokesperson for a spokesperson said the price increases will be visible on shelves starting in August and have been communicated to retailers like Walmart and Target. They are in the mid-single digits across categories.
Due to the negative effects of tariffs, Walmart also made the announcement in May that it would have to raise prices for goods sold at the big box store.
P&, G’s earnings report exceeded expectations for the fourth quarter. The Cincinnati, Ohio-based business reported a quarter-over-the-counter revenue of $ 20.89 billion. In fiscal 2025, organic sales increased by about 2 percent, thanks to higher prices, especially for fresher items, as well as P&, G’s portfolio of branded pantry staples. However, that occurs as the economy is anticipated to slow.
Growth stops.
P&, G anticipates a growth of between 1 and 5 percent of its annual net sales for fiscal 2026, which is significantly below what was anticipated at 3.09 percent.
CFO Andre Schulten addressed journalists on the phone as they discussed how volatile macroeconomic, geopolitical, and consumer dynamics were causing headwinds that were not anticipated at the start of the year, and how market growth has slowed since then.
The consumer is more selective about how they shop in our categories, according to Schultz, and we see a desire to find value by increasing the size of the packs sold in club channels, big box stores, or by lowering the cash cost.
The company’s comments reinforce how consumers are seeking value as they try to stretch their budgets, especially those in the lower income group. Nestle, a manufacturer of packaged foods, reported last week that North American consumer spending is still subpar.
The organic growth is a good indicator that Zacks Investment Management’s portfolio manager’s opinion should hold up given the enormous pressure being put on US consumers in particular.
P&, G, which manufactures household staples ranging from Bounty paper towels to Metamucil fiber supplements, is projected to see an increase in its costs of about $1 billion before taxes for fiscal 2026. In contrast, the projections from April of between $1 billion and $1 billion differ.
In order to increase productivity, the company launched a restructuring plan in June that included removing approximately 7, 000 jobs over the course of two years. Volumes were unchanged throughout the fourth quarter, but prices increased by about 1%.
According to estimates compiled by LSEG, P&, G anticipates growth in fiscal 2026’s core net earnings per share in the range of $6.83 and $7.09, compared to estimates of $6.99.
Source: Aljazeera
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