Procter & Gamble Co.
PG,
said Tuesday it’s planning a restructuring of its business operations, primarily in certain enterprise markets, including Argentina and Nigeria, to address “challenging macroeconomic and fiscal conditions.” The consumer goods company expects to book after-tax restructuring charges of $1.0 billion to $1.5 billion, most of which will be noncash and recognized in the fiscal years ending June 30, 2024 and 2025, with the first charges to be booked in the quarter ending Dec. 31. The company also expects to book a roughly $1.3 billion pretax noncash impairment charge related to its 2005 acquisition of The Gillette Co. “The impairment charge arises from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the restructuring program described above,” the company said in a regulatory filing. It said the underlying Gillette business remains strong, but future adverse changes in the business or macro environment may trigger another charge. The stock has gained 0.3% in the year through Monday’s close, while the S&P 500
SPX,
has gained 19%.
