P&G warns coronavirus is disrupting China business
The country is P&G's second-largest market
Procter & Gamble warned the coronavirus outbreak is curbing in-store sales and limiting the ability of its digital operations to meet demand.
Shares of the Cincinnati-based consumer goods maker were little changed following the update.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PG | PROCTER & GAMBLE CO. | 172.75 | +1.86 | +1.09% |
“China is our second-largest market -- sales and profit. Store traffic is down considerably, with many stores closed or operating with reduced hours,” Jon Moeller, chief financial officer, said in a U.S. Securities and Exchange Commission filing on Thursday. “Some of the demand has shifted online, but supply of delivery operators and labor is limited.”
He emphasized that the company's projections for sales and profit this year "remain the right ones." In late January, P&G raised its sales growth forecast to a range of 4 percent to 5 percent and its earnings-per-share growth target to 235 percent to 245 percent.
"We will continue to monitor the situation and obviously update you if and when a different reality becomes apparent," Moeller said.
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P&G shares have climbed 0.4 percent this year, trailing a 4.9 percent gain on the S&P 500.