P&G is undergoing a leadership change at the very top as the consumer goods giant said price hikes are on their way amid the ever-evolving tariffs landscape.
Shailesh Jejurikar, currently chief operating officer, will succeed Jon Moeller as president and CEO, effective Jan. 1. Moeller will become executive chairman of P&G, whose brands include Pampers, Tide, Gillette and SK-II.
Jejurikar joined P&G in 1989 and has been a member of P&G’s global leadership team since 2014, holding various senior leadership roles in categories, sectors and regions.
“P&G people, our brands, and our capabilities in innovation and operational excellence fuel my confidence for a future of sustained growth and value creation,” said Jejurikar.
“It has been an honor to serve as CEO of P&G, and I am incredibly proud of the value created by the people of P&G through an integrated strategy that is being executed with excellence,” added Moeller. “I look forward to supporting Shailesh and the entire team as they continue to improve the performance and value of P&G brands and categories to win with consumers and customers around the world.”
The news came as the company said it would increase prices on around a quarter of items.
“At these rates, tariffs alone are a 5-point headwind to core EPS growth in fiscal 2026. We will look for every opportunity to mitigate these impacts, including sourcing flexibility, productivity improvements, and pricing with innovation in affected categories and markets,” said Moeller during an earnings call.
Its fiscal 2026 outlook includes $1 billion before tax in higher costs from tariffs based on rates announced since July 9, Moeller explained. “You can think about the tariff impact in three buckets. About $200 million from materials and products imported from China to the U.S. Another $200 million from Canada’s tariffs on goods shipped from the U.S. And the remaining $600 million from tariffs on goods coming to the U.S. from the rest of the world.”
The company reported fiscal year 2025 fourth-quarter net sales of $20.9 billion, up 2 percent versus the prior year and a touch above Wall Street estimates. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, also increased 2 percent.
Diluted net earnings per share were $1.48, an increase of 17 percent. Analysts had penciled in $1.42.
Within that, beauty segment organic sales rose 1 percent year-over-year, while hair care organic sales were unchanged as growth in Latin America and Europe was offset by volume declines in North America and Greater China.
Personal Care organic sales increased low-single digits and skin care organic sales were unchanged. Grooming segment organic sales increased 1 percent versus year ago.
“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment,” said Moeller. “In fiscal 2026, we expect to deliver another year of organic sales growth, core EPS growth and strong adjusted free cash flow productivity.”
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