Procter & Gamble shares tumble following US$2.5 billion Gillette writedown

Procter & Gamble shares tumble following US$2.5 billion Gillette writedown

THE WHAT? Procter & Gamble’s shares dropped 2 percent in early trading earlier this week after the US FMCG giant announced a US$2.5 billion write down over two years for its Gillette brand. A US$1.3 billion non-cash impairment charge before tax would be recorded in the current quarter, ending December 31, 2023.

THE DETAILS According to a report published by Reuters, the company expects the restructuring of its Argentina and Nigeria units to bring charges of between US$1 billion and US$1.5 billion.

THE WHY? The manufacturer of Olay attributed the charges on the strength of the dollar, per Reuters quoting CFO Andre Schulten’s speech at a Morgan Stanley conference. P&G recorded a US$8 billion charge on Gillette in 2019, also put down to currency fluctuations.

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