The Trump administration’s tariff policy is causing Procter & Gamble (PG) to push through price hikes on shoppers to protect its profit margins.
“It [tariffs] is inherently inflationary — it increases the cost of importation and that’s part of the policy design. In some places that makes, a lot of sense. But, it inherently increases cost. Then manufacturers need to work through how much of that they can absorb and deal with and how much they need to pass on,” P&G chairman and CEO Jon Moeller told me on Yahoo Finance.
The company said Tuesday it will see a $1 billion hit to profits in its new fiscal year as a result of tariffs.
It’s increasing prices as a result.
“There will be some price increases,” Moeller said. “We’re going to try to combine those with innovation … We’re also working hard to reduce cost to minimize the impact of those price increase.,
P&G is taking a cautious approach to the next twelve months as it navigates uncertain consumers and tariffs.
It offered mixed EPS guidance for its new fiscal year, with the bottom end of the range below analyst forecasts. The company forecasts full fiscal year sales growth of unchanged to up 4%. Analysts were looking for 2% growth. Earnings are pegged in a range of $6.83 to $7.09 compared to estimates for $6.99.
Moeller says consumers are trading down to cheaper alternatives within the P&G portfolio.
Shares rose slightly in pre-market trading as fourth fiscal quarter results beat estimates.
P&G’s earnings were overshadowed by a surprise change atop the C-suite ahead of the results.
The consumer products giant announced late Monday that Shailesh Jejurikar will succeed CEO Jon Moeller on Jan. 1, 2026. Jejurikar is currently the company’s COO but has been with P&G since 1989. He has helped lead some of P&G’s most important businesses around the world, notably a fabric care business led by the Tide brand.
Moeller has been the CEO of P&G since November 2021. He has been with the company since 1988, holding positions such as COO and CFO before landing the top job.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
