On December 6th, Procter&Gamble Group announced that it will increase its business restructuring costs. The announcement shows that Procter&Gamble plans to restructure its business operations in some markets (including Argentina and Nigeria) to cope with challenging macroeconomic and fiscal conditions, with an expected increase of $1 billion to $1.5 billion in restructuring costs, including foreign exchange translation losses recognized during the liquidation of affected market businesses.
In addition, Procter&Gamble will provide a non cash impairment expense of $1.3 billion for the intangible assets acquired from Gillette in 2005. Combining the restructuring plan with impairment expenses, the estimated total cost is between $2 billion and $2.5 billion. The announcement points out that Gillette's basic business remains strong, but adverse changes in future business or macroeconomic environment may trigger further impairment provisions.
In October this year, it was reported that Procter&Gamble Group was considering selling its Sassoon China business at a valuation of $1 billion and had begun evaluating investors' initial interest in the business. The options being considered include selling all or part of the equity. Regarding this, Andre Schulten, Chief Financial Officer of Procter&Gamble Group, stated, "We continue to monitor our business portfolio, including acquisitions and potential options, to create value for shareholders."
According to the first quarter financial report of Procter&Gamble Group for the 2024 fiscal year, the group's revenue reached $21.87 billion, a year-on-year increase of 6%, and organic sales increased by 7%, higher than analysts' expected growth rate of 5.8%. In addition, the net profit attributable to the company was 4.52 billion US dollars, compared to 3.94 billion US dollars in the same period last year.