Skip to content
Search
AI Powered
Latest Stories

P&G sees China improvement but consumers 'still struggling'

P&G sees China improvement but consumers 'still struggling'
Photo: Procter & Gamble

Procter & Gamble is seeing encouraging signs in China, but a full recovery is still a ways off, executives said Wednesday as the consumer products giant reported solid earnings.

P&G, whose brands include Tide detergent and Charmin toilet paper, saw improvement in China in the just-finished quarter in sales of SK-II, a premium skin care product.


Chief executive Jon Moeller also pointed to an uptick in the number of Chinese travelers to South Korea and Japan, as an indication of "more confidence and a willingness to spend" among some in the population.

But Moeller noted that SK-II is "very premium-priced product" and "the broad swath of society is still not confident and is still struggling," he told analysts on a conference call.

The comments came as P&G reported profits of $4.6 billion (£3.74bn) in its fiscal second quarter, up 34 per cent on revenues of $21.9bn, up 2 per cent.

P&G also confirmed its earnings forecast for fiscal 2025, a year in which it projects sales growth of two to four percent.

Executives highlighted product launches including a whole-body deodorant spray and a new advanced power toothbrush as elements that would sustain sales growth.

P&G experienced a 3 per cent drop in organic sales in its Greater China division.

Although still shrinking, chief financial officer Andre Schulten described the performance as "a solid step forward" compared with the 15 per cent decline in the prior quarter.

While "underlining market conditions remain soft," Schulten said "we are trending back toward growth in Greater China."

Sales of SK-II, which is manufactured in Japan, have been hampered in recent quarters in China due to anti-Japan sentiment in the country.

But Moeller, citing fewer negative social media mentions in China, described the climate as improving, saying "the whole dynamic of Japanese brand sentiment, I think, is easing."

More for you

Fed praises InPost Newstrade for changes
Fed praises InPost Newstrade for changes
Fed praises InPost Newstrade for changes

Fed praises InPost Newstrade for changes

InPost Newstrade, formerly Menzies Distribution, is making some changes to its carriage charge model following discussions with the Federation of Independent Retailers (the Fed).

In a letter to its UK customers which was being sent today (10), the news wholesaler has announced that it is to decrease the base charge to support retailers with lower sales.

Keep ReadingShow less
marks and spencer CEO warns Rising taxes on retail

Marks & Spencer slams government on rising taxes.

iStock image

M&S chief slams government for raiding retail 'like piggybank'

The retail industry is being “raided like a piggy bank”, chief executive of Marks & Spencer has stated, calling on the UK government to delay or ease planned tax and recycling charges.

Writing in the Sunday Times, Stuart Machin said that without pausing or staggering the changes to national insurance and business rates, which come into effect this April, UK retail would get smaller.

Keep ReadingShow less
Pernod Ricard considers sale of Mumm champagne

Bottle of Champagne G.M. Mumm Brut Cordon Rouge

Photo: iStock

Pernod Ricard considers sale of Mumm champagne

Pernod Ricard is exploring a sale of its champagne brand G.H. Mumm, Reuters reported citing five sources familiar with the matter, as the company looks to focus on premium labels in its portfolio.

The French spirits giant behind Absolut Vodka and Jameson Irish whiskey is working with investment bank Rothschild & Co on the possible divestiture, that could attract interest from other spirits and beverage companies, the sources said.

Keep ReadingShow less
Funding delay threatens UK meat safety

Funding delay threatens UK meat safety

iStock image

UK faces risk of 'potentially dangerous' meat, warn Tories

"Potentially dangerous" meat could appear on UK store shelves if the government does not adequately fund food security checks at Dover port, the Conservatives have warned.

Criticising the government in a heated back-and-forth in the Commons, shadow environment secretary Victoria Atkins accused that the government of spending “more than the entire Defra budget to surrender the Chagos Islands”.

Keep ReadingShow less
​Huge quantities of illegal cigarettes and vapes seized in Oxfordshire

Huge quantities of illegal cigarettes in Oxfordshire

Image from Oxfordshire County Council

Huge quantities of illegal cigarettes, vapes seized across UK

Almost 10,000 counterfeit and smuggled cigarettes and other tobacco and nicotine-based products have been seized following a series of visits to retail premises by Oxfordshire County Council’s trading standards team.

As reported by the council, the raids, carried out on Jan 21, were part of Operation CeCe, a national initiative to tackle the sale and supply of illegal tobacco products.

Officers were accompanied by specialist tobacco detection dogs, which can sniff out contraband in concealments within till points or hidden in storerooms.

Keep ReadingShow less