A Procter & Gamble Co. executive said US sales of the product categories the company competes in were down “significantly” in October and probably through November, a cautionary note on American consumers’ spending heading into the holiday season.
Sales for those categories were “down both in volume and in value significantly in October,” P&G Chief Financial Officer Andre Schulten said at a conference hosted by Morgan Stanley. “I don’t expect November to be materially different,” he added.
The shares fell as much as 3.3 percent on the comments, reaching the lowest intraday since Dec. 2023. Rivals including Unilever Plc, Colgate-Palmolive Co. and Haleon Plc slipped after the presentation. P&G stock closed Tuesday down 1.1 percent.
Declining sales in those areas are “a tough context for the US business,” Schulten said. Still, “that’s all within the annual guidance range we’ve provided.” The weakness in the US is likely to hit the current quarter more than annual earnings, he added.
P&G is expected to report its fiscal second quarter results on Jan. 22.
Heading into this quarter, P&G executives were prepared for some headwinds, expecting US consumers to be “more nervous and cautious.” The company also anticipated stronger competition from rivals, Schulten said.
What was unexpected, he added, was the government shutdown as well as the impact on monthly federal food assistance, known as SNAP.
“The context in the US is more volatile,” Schulten said. “Probably the most volatile we’ve seen in a long time.”
The CFO also spoke about the company’s acquisition strategy.
“We will always look at great opportunities for bolt-on acquisitions,” he said. “Not everything works, but Native has worked brilliantly, for example,” Schulten said in reference to the deodorant brand P&G acquired several years ago.
“That’s our primary focus — find those $50 million to $150 million brands that we can scale” in the health care and beauty categories, he said.
By Jeannette Neumann
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