New York (AFP) – Procter & Gamble on Friday reported higher earnings fueled in part by an improved performance in China as it projected a lower hit from tariffs. The maker of Tide detergent, Pampers diapers, and Bounty paper towels scored increased sales in all five product categories, with the biggest gains in beauty and grooming. This came despite what the US-based company termed a “challenging consumer and geopolitical environment” with inflation-stretched consumers and fast-changing tariff policies.
Profits in the quarter ending September 30 were $4.8 billion, up 20 percent. Revenues rose three percent to $22.4 billion. The consumer products giant — which announced a downsizing in non-manufacturing employment in June in the wake of the tariff onslaught — now sees a hit of $500 million in fiscal 2026, down from an earlier forecast of $1 billion.
Chief Financial Officer Andre Schulten said the improved outlook reflected White House moves to exempt from tariffs “natural materials and ingredients” not grown in the United States, such as eucalyptus pulp and cilium. “What the administration has done is basically grant exemptions, broad exemptions in some of these tariff frameworks for those materials that cannot be grown in the US, which is highly appreciated and makes sense,” he said on a conference call with analysts.
Schulten said the company’s plan to eliminate 7,000 non-manufacturing jobs over two years was on track. The goal is “smaller teams that are better set up” and capable of exploiting digital technologies “to focus on the consumer and brand building,” he said.
P&G has made strides in the greater China market, where sales grew five percent. Schulten described the performance as “very strong progress” following a rethink of operations and marketing while characterizing the competitive environment as difficult. “I don’t expect it will be a straight line, but I feel very good about the progress we’ve made,” Schulten said of China. Shares of P&G rose 1.2 percent shortly after midday.
© 2024 AFP
