Today it has become really too expensive

Robert McDonald would have surely dreamt of joysticks to reach in less troubled circumstances. This "pure proctérien" became number one operational U.S. giant a month ago, then that group currently faces "one of the harshest environments has been for decades", in the words of his predecessor, George Alan Lafley, who always presides over the Council eager administration.

The figures published yesterday show: Procter & Gamble is a well-oiled machine, which always produces huge benefits. But it is not immune from the crisis, and sentence to the higher of its sales fall. Wall Street has also accused the coup. The action has lost up to 4 yesterday at the meeting. The current global recession is testing the economic model of the group from Cincinnati, Ohio.

For years, Procter & Gamble put on strong brands sold at high prices. Its Pampers diapers, for example, are among the most expensive market. A cost justified by the softness of the product, anti-fuite and other technological barriers.

These past months, building on the fidelity of its customers, the multinational still noted his price. In particular from the United States, to offset the effects of the decline of the dollar. The rise has reached an average of 5, but she was much stronger in the products for domestic animals, which increased by more than 10, and razors.

The impact of price increases

The problem is that these hausses to repeat eventually have an impact on the volumes sold. Especially in times of crisis. A portion of consumers turn away from the more expensive products. For example using Pampers products only at night, and taking of brands in the day, when the layers are changed more often and can be a little less absorbent. In the last quarter, ventes of products for domestic animals also fell 15 in volume, and those razors and other articles the toilet from 7. Mark Braun, inherited from the acquisition of Gillette, already had trouble selling out before the crisis. Today, it has become really too expensive. Perfumes were also known a "dismal year", according to same branch.

In total, in view of the very défavorables monetary effets, the turnover of the Group thus declined 3 in the fiscal year ending in late June to 79 billion dollars, and by 11 to the only fourth trimestre. These past months, toutes product categories saw their sales reflow.

The Directorate on tenterhooks

The rise in the price and cost reduction efforts have however helped with Procter & Gamble to keep very solides marges. The net profit, up 11 on the year, at $ 13.4 billion, fell by 18 in the fourth quarter. The American champion displays as toujours an operating margin of 20.4, and a net margin of more than 14, which many of its competitors to délecteraient.

The direction is however on tenterhooks. She fears a new decrease in turnover of 10 in the current quarter. Profits may be lower than Wall Street expectations. And yesterday, the Group promised not only to strengthen its efforts in the razor and toilet articles, the sector where profits are the most affected, but also to strengthen its offer of products at moderate prices. A strategic inflection, at least in the speech.