Tide Maker P&G Lowers Annual Outlook Amid Tariffs and Soft Global Demand

Procter & Gamble Co. (P&G) has revised its annual sales and profit outlook downward, citing ongoing tariff impacts and weakened global consumer demand. The consumer goods giant now expects organic sales growth of approximately 2% for the fiscal year ending in June—below its earlier forecast of 3% to 5% issued in January.

In its quarterly results released Thursday, the company posted revenue of $19.8 billion for the three months ending March 31. Organic sales volume remained flat, with modest gains in beauty and grooming offset by declines in baby and feminine care segments. The company increased prices by 1%, mainly in the beauty and grooming categories.

Cautious Outlook Amid Geopolitical Headwinds

“We delivered modest organic sales and EPS growth this quarter in a challenging and volatile consumer and geopolitical environment,” said CEO Jon Moeller in a statement. “We’re making appropriate adjustments to our near-term outlook to reflect underlying market conditions.”

P&G now expects full-year earnings per share (EPS) in the range of $6.72 to $6.82, compared to $6.59 in the previous year. This is a downgrade from its January EPS outlook and reflects a more cautious approach in light of ongoing global uncertainties.

Consumer Shifts and Regional Headwinds

Despite starting the year on a strong note with its first quarterly sales beat in over a year, P&G has seen a slowdown in retail shipments.

In February, CFO Andre Schulten warned of potential risks to profit guidance, citing sluggish consumption in Asia, Africa, and the Middle East, which he attributed in part to growing “anti-Western sentiment.”

The company’s shares dropped 2% in premarket trading following the announcement. P&G stock is down 1% year-to-date, outperforming the broader S&P 500, which has declined 9%.

Tariff Strategy and Supply Chain Resilience

While P&G has taken steps to shield itself from trade disruptions—including manufacturing 90% of its U.S. products domestically—it still faces some exposure to tariffs, particularly on goods imported from China.

Less than 15% of P&G’s U.S. imports originate from China, comprising mainly raw materials, packaging, and select finished products.

P&G is not alone in facing difficulties with forward-looking guidance. Other major U.S. firms, including United Airlines and Delta Air Lines, have adjusted or withdrawn financial forecasts amid macroeconomic uncertainty and fluctuating trade conditions.

Stock Performance 

On April 25, 2025, Procter & Gamble share price traded 1.10% lower at ₹14,225.00 at 2:42 PM (IST). Procter & Gamble share price reached a 52-week high of ₹17,747.85, and a 52-week low of ₹12,140.15. As per BSE, the total traded volume for the stock stood at 710 shares with a turnover of ₹1.00 crores.

According to exchange data, Procter & Gamble shares are trading at a price-to-earnings (P/E) ratio of 64.50x, based on its trailing 12-month earnings per share (EPS) of ₹220.55, and a price-to-book (P/B) ratio of 59.90.

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