Procter & Gamble Co. experienced stagnation in a significant sales metric during the latest quarter, indicating that US consumers have adopted a more cautious spending approach.
The company, known for brands like Pampers and Tide, reported flat organic sales, which exclude factors like currency fluctuations and acquisitions. This marks the slowest growth rate in a decade, slightly falling short of analysts’ average predictions. Volume decreased by 1 percent, primarily due to declines in baby, feminine, and family care products.
P&G’s Chief Financial Officer, Andre Schulten, expressed optimism for a sales rebound in the next six months. The recent quarter faced tough comparisons to the previous year, when consumers rushed to stock up on necessities ahead of port strikes. Factors such as the government shutdown and a temporary halt in food aid also negatively impacted the quarter, which concluded on December 31.
Schulten emphasized that this quarter serves as a base for expected growth in the latter half of the year during an interview with Bloomberg News.
Meanwhile, the company’s stock fell by as much as 1.1 percent during premarket trading on Thursday. P&G shares dropped nearly 15 percent last year, contrasting with the S&P 500 Index, which rose by 16 percent over the same timeframe.
Despite the current setbacks, P&G remains confident in achieving its guidance for organic sales growth for the fiscal year ending in mid-2026. This confidence stems, in part, from strong performance in markets like Europe and Latin America, where organic sales increased by 8% in the latest quarter, as noted by Schulten.
The increased revenue in these regions, where P&G has piloted new products and marketing tactics, reassures the company of an upward trend in both US sales and continued growth internationally, Schulten stated.
Additionally, a new Tide detergent formula introduced to the US market at the end of last year is reportedly performing well.
That said, the lackluster quarterly results increase pressure on Chief Executive Officer Shailesh Jejurikar, who assumed the role on January 1, to ensure P&G meets its commitments for recovery in the upcoming months.
When P&G first outlined its annual organic sales projections in July, the guidance range was notably broader than typical forecasts due to uncertainty over new tariffs and consumer responsiveness. The company anticipates organic growth between flat and up to 4 percent.
To stimulate growth, P&G is implementing some price reductions and modifying package sizes to attract more budget-conscious shoppers. Overall, prices for the company’s products increased by 1 percent in the last quarter, consistent with recent trends.
“We must ensure the right affordability and pricing strategy for every consumer considering the P&G portfolio,” Schulten said, refraining from commenting on potential future price hikes.
