Valued dollar affects performance of P&G

The extensive effort of Procter Gamble to boost its growth & head-on, at the end of last year, with the appreciation of the dollar against other currencies. The American giant consumer sector stated that the widespread weakening of the currencies of other countries is unprecedented and led to a drop in performance of all its major segments. The P&G added that currency effects will reduce its sales in five percentage points which fell $ 1.4 billion in profits during the fiscal year that ends in June. The foreign exchange scam is a consequence of the successful expansion of P&G on world markets. This expansion left the company quite exposed to the sharp drop of the ruble, for example. The result is affected because, when the currency of a country devalues, it lost sales value when recorded in dollar. To negate the impact, the manufacturer is using cost cuts, including staff reductions and investments in marketing. The measures include the migration of a larger share of advertising to digital channels, which already represent more than 30% of the total. The company is also raising prices and changing providers products, but these measures take a long time to have a pronounced effect on the final result. The P&G is eliminating layers of management and focusing on products that account for the bulk of its revenue and profit. Except for foreign exchange factors, P&G performance was largely within expectations. Organic sales, which do not consider the effects of foreign exchange and acquisitions or sales, grew 2%, with all sectors having registered gains unless the long-beauty in trouble. Unit sales were steady in the quarter, and volumes fell 2% in the segments of beauty and personal care, hygiene and health. Already the laundry products segment advanced 2 percent. The price of the shares of P&G fell 3.5 percent yesterday, to $ 86,43.