Tide detergent maker P&G says may be unable to operate in Russia
2022.04.21 00:47
FILE PHOTO: A plant wall with Procter & Gamble’s logo is pictured at the entrance to the company’s highly automated cleaning products factory in Tabler Station, West Virginia, U.S., May 28, 2021. REUTERS/Timothy Aeppel
By Jessica DiNapoli
NEW YORK (Reuters) – Household goods maker Procter & Gamble (NYSE:PG) Co said in a securities filing on Wednesday that it may not be able to stay in business in Russia because of sanctions, restrictions on financial institutions, supply challenges and monetary controls.
P&G and many of its competitors scaled back their business in Russia in March after Moscow invaded neighboring Ukraine. On Wednesday, P&G cited the war’s impact on its retail customers, suppliers and distributors as a factor in whether or not it will be able to stay in business in Russia.
P&G, which also makes Gillette razors, has roughly 2,500 in employees in Russia.
The company said there is a “high level of uncertainty as to how the war will evolve, what its duration will be and its ultimate resolution.”
The company also said its two factories in Ukraine could be destroyed, leading the company to take a financial hit. There are roughly 500 P&G employees in Ukraine.
Before the war, P&G’s business in Russia and Ukraine represented 1.5% to 2% of its net sales and global profit, executives said on an earnings call with analysts on Wednesday. [L3N2WI28E]
P&G said last month it was ending all new capital investments in Russia and “significantly reducing” its portfolio to focus on basic hygiene, health and personal care items.
