The world’s largest consumer goods manufacturer said it would need to raise prices by a quarter of products that begin in August.
Procter & Gamble says it will need to raise the price of a quarter of the items sold in the US from this month to ease the costs facing the tariffs imposed by US President Donald Trump.
On Tuesday, along with the revenue report, he will be navigating the tariff-driven uncertainty that will put the company under pressure on the sector as the new CEO named Shailesh Jejurikar, the world’s largest consumer goods manufacturer.
The price hike has been communicated to retailers like Walmart and Target, and has been in the medium digits across categories and said it will be seen on the shelves starting in August.
In May, Walmart announced that the price of items sold at major retailers would need to be increased due to the economic impact of tariffs.
P&G has passed its fourth quarter estimates in its revenue report. The Cincinnati-based company, Ohio, reported quarterly revenue of $208.9 billion. P&G’s portfolio of branded pantry staples and particularly high pricing for fresh products, organic sales rose by around 2% in fiscal year 2025. However, that is because growth is expected to slow.
Growth halt
P&G expects annual net sales to grow between 1% and 5% in 2026, with a growth rate of mainly 3.09%.
CFO Andre Schulten, during his call with journalists, said market growth was slowing from the beginning of the year to the beginning of the year, with volatile macroeconomic, geopolitical and consumer dynamics leading to headwinds.
“Consumers are clearly selective in terms of shopping behavior in our category and want to find value by entering a larger pack size or lowering cash outlays with club channels or online or on the big box retailer,” Schulten said.
Comments from the company reinforce the way consumers, particularly in the low-income category, look for value when trying to grow their household finances. Packaged food maker Nestle said last week that consumer spending in North America is weak.
“Organic growth is a very good indication that long-term revenue forecasts should be maintained, especially given the great pressure on US consumers,” said Brian Mulberry, portfolio manager at Zacks Investment Management.
P&G will create household basics ranging from bounty paper towels to Metamucil fiber supplements, but is estimated to raise costs of around $1 billion before the taxes for fiscal year 2026.
The company left several brands in June and deployed restructuring efforts to reduce approximately 7,000 jobs and increase productivity over the next two years. Prices rose about 1% in the fourth quarter, but volume remained flat.
P&G forecasts growth rates for core net income per share in the range of $6.83 and $7.09 compared to estimates compiled by LSEG.
On Wall Street, the company’s stock fell 0.5% over the past five days, down 1.1% that month and down 5.15% since the start of the year.
