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Tide detergent maker P&G says may be unable to operate in Russia -Breaking

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© Reuters. 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:) 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.

According to the company, there’s a high degree of uncertainty about how and when war will develop, its duration, and its final resolution.

Also, the company stated that its two Ukrainian factories might be destroyed. The financial impact caused by this was significant. 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.

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