P&G’s shares volatile amid slow start to quarter and market volatility

Published 20/02/2025, 15:52
© Reuters.

Investing.com -- Procter & Gamble (NYSE:PG)’s (P&G) shares initially dipped 2.5% before erasing losses to trade in the green after the company’s Chief Financial Officer, Andre Schulten, commented on a comparatively slow start to the current quarter.

This sluggish beginning has added to the existing pressure on the company’s top and bottom-line performance.

Schulten also pointed out that newly enacted and proposed tariffs are introducing additional layers of volatility. He mentioned that the company is closely monitoring the impact of foreign exchange (FX) fluctuations and the effect of nationalistic consumer behavior on its operations.

P&G has observed a slowdown in market consumption in the Asia, Middle East, and Africa region, including India. The company is also facing soft market conditions in China and anti-Western sentiment in the Middle East.

Despite these challenges, P&G is not making any changes to its fiscal year guidance ranges at the moment. However, Schulten stated that the company is bolstering its plans to support the low-end of its guidance ranges for the year. He noted that due to the current volatility, maintaining the low-end guidance has become a fast-moving target.

Schulten also indicated a possibility that external factors could lead to a slightly below guidance range outcome on the bottom-line. This is as the company aims to protect its investments in innovation for the second half of the year.

He expects the business environment to continue being volatile and challenging, from input costs to currencies, consumer behavior, retailer dynamics, and geopolitical factors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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