P&G profits dip as weakening demand slows sales

Procter & Gamble reported a decline in profits on slightly lower sales Friday as the company said a recovery in China was still a number of quarters away.

The producer of Tide detergent and Crest toothpaste, P&G reported mixed sales across its five product categories, with health care growing the most and beauty declining the most.

Profits were $4.0 billion (£3.07bn), down 12 per cent from the year-ago level, partly due to some $800 million in one-time restructuring costs tied to the liquidation of assets in Argentina.

Revenues slipped one percent to $21.7 billion.

Beauty sales were dented by volume declines in Greater China, where the super-premium SK-II skin care brand has been weak for a number of quarters.

Chief financial officer Andre Schulten said the company welcomes recent stimulus measures from Beijing but that it doesn't expect a quick turnaround in China.

"All we can say at this moment is we're still down, and we believe it will take a few quarters until we get back to positive growth," Schulten said on a call with reporters.

China's recovery "will take time," he said.

In contrast, Schulten described the US as "very strong" for its consumer products, with growth of about 4 per cent in P&G's categories.

"The consumer continues to be favorably inclined to P&G, and we also don't see any trade down," he said.

P&G confirmed it sees fiscal 2025 sales growth of between 2 and 4 per cent.