Procter & Gamble hurt by strong dollar

Procter & Gamble hurt by strong dollar

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.

Questions or comments? Please feel free to contact the editors

Zalando ventures into make-up with physical store


Fashion web shop Zalando is to start selling beauty products in Germany and in order to better present those products, it will open a physical beauty store in Berlin. Last quarter, Zalando came close to a 30 % turnover growth.

Dollar Shave Club ready for Europe


The Dollar Shave Club will arrive on European shores next year. The razor blade subscription service, owned by Unilever, has long since been a success in the United States.

Unilever interested in Estée Lauder


Increasing rumours say that cosmetics company Estée Lauder may be up for sale and that there are a number of interested parties, including L’Oréal and Unilever.

Sephora launches smaller store formula


Cosmetics manufacturer Sephora launched a smaller store formula in the United States. Up until now, it had focused on large stores, but has now turned its attention to smaller stores.

Brazilian takeover of The Body Shop confirmed


L’Oréal has officially confirmed the sale of its British subsidiary The Body Shop to Brazilian Natura Cosméticos. The deal was signed this week, is estimated to be worth 1 billion euro and should be finalized before the end of the year.

AS Watson wants to acquire Holland & Barrett


AS Watson, Kruidvat’s parent company, has entered negotiations to acquire Holland & Barrett. It is apparently willing to pay one billion pounds (1.15 billion euro).

Back to top