By Jessica DiNapoli and Juveria Tabassum
(Reuters) -Procter & Gamble on Tuesday forecast annual results largely below estimates and said it would raise prices on some products in the U.S., a day after naming insider Shailesh Jejurikar as CEO to steer it through tariff uncertainty.
The consumer goods bellwether’s shares rose nearly 1% in premarket trading as it topped fourth-quarter estimates.
P&G said it would raise prices on about a quarter of its products in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump.
The price hikes have been communicated to retailers such as Walmart and Target and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August.
Market growth slowed from where it was at the start of the year in both the U.S. and in Europe, and volatile macroeconomic, geopolitical and consumer dynamics were resulting in market-level headwinds that were not anticipated at the start of the year, CFO Andre Schulten said during a call with journalists.
Still, organic sales grew about 2% in fiscal 2025, driven by P&G’s portfolio of branded pantry staples, as well as higher pricing, particularly for fresher products.
The comments from the world’s largest consumer goods maker reinforce how consumers, particularly in the lower-income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle said last week that consumers in North America remained weak.
P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April.
The company began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity. Prices rose about 1% in the fourth quarter, while volumes were flat.
The company expects fiscal 2026 core net earnings per share growth in the range of $6.83 and $7.09, compared with estimates of $6.99, according to estimates compiled by LSEG.
Its target for annual net sales growth of between 1% to 5% was also largely below estimates.
For the three months ended June 30, the company’s revenue rose to $20.89 billion, topping estimates of $20.82 billion, while core profit of $1.48 per share also beat expectations.
(Reporting by Juveria Tabassum in Bengaluru and Jessica DiNapoli in New York; Editing by Sriraj Kalluvila)
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