PROCTER & Gamble said on Tuesday (Dec 5) it would record up to US$2.5 billion in charges over two fiscal years as it writes down the value of its Gillette business and restructures certain markets.

The company’s shares fell about 2 per cent in early trade.

The consumer goods giant said it would take a US$1.3 billion non-cash impairment charge before tax in the current quarter ending Dec 31 on its Gillette business.

P&G, which bought Gillette for US$57 billion in 2005, gets about 8 per cent of its total sales from the grooming business.

The company expected its Gillette business to grow in the range of 5 per cent, chief financial officer Andre Schulten said at a Morgan Stanley conference on Tuesday, in line with growth over the last three years.

In 2019, P&G took an US$8 billion charge on the unit due to currency fluctuations.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The company said it expects charges of between US$1 billion and US$1.5 billion after tax related to the restructuring of its Argentina and Nigeria operations as it deals with difficult macroeconomic conditions.

P&G also blamed a stronger US dollar for the twin charges.

“It’s very difficult for us as a US dollar-denominated company to create value (in these markets),” Schulten said.

P&G said it was looking to divest its fabric and home care business in Argentina and turn Nigeria into an import-only market.

Total charges will be between US$2 billion and US$2.5 billion after tax and will be recognized in fiscal years 2024 and 2025.

Net earnings attributable to the company was US$14.7 billion for fiscal 2023. REUTERS