P&G expects coronavirus outbreak to hit current-quarter revenue, profit
(Reuters) – Procter & Gamble Co (PG.N) said on Thursday its current-quarter revenue and profit would take a hit from supply chain disruptions and weak demand due to the coronavirus outbreak in China, the consumer goods company’s second-biggest market.
The epidemic, which originated in China’s Hubei province and has claimed more than 2,000 lives, has raised concerns on its economic fallout stretching further into 2020, as companies have been forced to shut stores and curtail manufacturing in the critical market.
The company’s supply side has come under pressure, as it relies on 387 suppliers in China that ship more than 9,000 different materials, impacting about 17,600 different finished product items.
“Each of these suppliers faces their own challenges in resuming operations,” Chief Financial Officer Jon Moeller said in a presentation at the Consumer Analyst Group of New York Conference.
P&G also said store traffic was considerably down in China and had fallen in other Asian countries as well.
“Some of the demand has shifted online, but supply of delivery operators and labor is limited,” Moeller added.
The company, which reaffirmed its full-year targets, did not provide financial estimates for the hit it would take in the quarter ending March.
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