Procter & Gamble's Q 4 revenue fell short of expectations, disclosed progress in restructuring and layoffs
The company's fourth-quarter financial report released on Wednesday showed that revenue fell short of market expectations. At the same time, the company updated investors on its ongoing restructuring plan and layoffs progress. In the fourth fiscal quarter ended June 30, P&G's net sales were US$21.2 billion, a year-on-year increase of 2%, but lower than analysts' expectations of US$21.38 billion. Organic sales, excluding the impact of currency exchange rates and mergers and acquisitions, were unchanged from the same period last year, and overall sales volume also remained unchanged. Net profit attributable to the company in the quarter was US$3.04 billion, or US$1.26 per share, a 15% decrease from US$3.62 billion in the same period last year. Excluding items such as restructuring costs, core earnings per share were $1.43, slightly above market expectations of $1.41. From the perspective of business segments, the beauty department performed outstandingly, with sales increasing by 3%, and demand for its Pantene shampoo and SK-II skin care products was solid. Sales in the fabric and home care division increased slightly by 1%. However, sales in the baby, feminine and home care divisions and grooming business both fell 1%, and weak sales of oral care products dragged down sales in the healthcare division by 3%. P&G CEO Shailesh Jejurikar characterized this fiscal year as a "building year," saying the company is advancing transformation in an "extremely challenging geopolitical and economic environment." The restructuring plan announced in June 2025 is continuing to be implemented, with the goal of reducing approximately 7,000 non-manufacturing positions globally, accounting for approximately 15% of non-production department employees. The company has borne more than half of the related restructuring costs in this fiscal year, and the remaining costs will be absorbed in fiscal 2027. Looking ahead to fiscal 2027, P&G expects core earnings per share to be in the range of $6.89 to $7.11, with total sales growing 1% to 3%. The company estimates that raw material, energy and transportation costs will result in about $1 billion in after-tax headwinds. Jejurikar also announced that he will serve as chairman of the board of directors effective August 1, replacing Jon Mohler who is retiring.