A strong dollar has hit Procter & Gamble quite hard in its fourth quarter, weakening both its turnover and profit.
Turnover dropped 4 %
"The October – December 2014 quarter was a challenging one, with unprecedented currency devaluations. Virtually every currency in the world devalued versus the U.S. dollar, with the Russian Ruble leading the way", CEO Alan Lafley said at the numbers's presentation.
The disadvantageous exchange rates have kept the American company's turnover at 20.2 billion dollars (17.8 billion euro) for its fourth quarter, 4 % lower than in the same period the year before. Net profit even dropped 31 % to 2.37 billion dollars (2.09 billion euro).
Lafley believes the exchange rate will continue to impact his company for months to come. For its full fiscal year, from July - June, he expects a 5 % turnover drop and a 12 % drop in net profit. To keep the effects to a minimum, the company which owns brands like Pampers, Luvs, Head & Shoulders, Ariel and Pantene, will cust costs while less profitable brands will be sold.