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English Views: 0 Author: Site Editor Publish Time: 2025-10-20 Origin: Site
Recently, Procter & Gamble (P&G), the world's largest consumer goods company, issued a stock filing through Gillette Pakistan Limited (GPL) stating that it will gradually cease its manufacturing and commercial operations in Pakistan. Instead, it will rely on third-party distributors to continue serving customers in the country.
The statement reads, "The Pakistan team will immediately initiate the transition plan, and we will continue operations until the transition is completed, which may take several months." P&G emphasized that its primary focus is on supporting its employees. Employees whose positions are affected will be considered for opportunities in other P&G businesses outside Pakistan, or they will receive severance packages in accordance with local laws and the company's policies.
Public data shows that P&G first entered the Pakistani market in 1991 and quickly became a leading player in the country's fast-moving consumer goods (FMCG) industry. Its product range covers personal care, home care, and oral hygiene.
To expand production capacity, P&G acquired a soap factory in 1994 and a detergent factory in 2010 respectively.
Last year, P&G sold its Safeguard soap manufacturing plant HUB (excluding the Safeguard brand name and its production formulas) to Nimir Industrial Chemicals Limited.
Currently, P&G boasts an extensive brand portfolio in the Pakistani market, including Pampers, Always, Safeguard, Head & Shoulders, Pantene, and Olay.
According to multiple foreign media reports, by the end of the fiscal year in June 2025, P&G's revenue in the Gillette Pakistan market had nearly halved. Prior to that, it had set a revenue record of 3 billion Pakistani rupees (approximately 240 million yuan) in the previous two years.
According to the filing, Series Acquisition B.V., the company's major shareholder which holds over 90% of Gillette Pakistan's shares, intends to purchase the remaining listed shares on the Pakistan Stock Exchange (PSX) to delist the company. The delisting process will involve submitting a formal application to the PSX, determining the repurchase price in accordance with relevant rules, and convening a general meeting of shareholders within 30 days of approval by the PSX.
P&G stated that the decision to exit the Pakistani market is part of its global restructuring efforts, aimed at driving growth through changes in its portfolio, supply chain, and organizational structure.
According to the financial report for the 2025 fiscal year, P&G's net sales reached 84.284 billion US dollars (approximately 600.835 billion yuan), a slight year-on-year increase of about 0.3%, with growth significantly slowing down. Its net profit rose by 7% year-on-year to 16.065 billion US dollars (approximately 114.519 billion yuan).
In the financial report, P&G reaffirmed its previously announced "Non-Core Business Restructuring Plan". The plan specifies that starting from July this year, P&G will launch a two-year program focused on portfolio optimization and productivity improvement. The goal is to enhance its cost structure and competitiveness by optimizing its business portfolio and organizational structure.
P&G specifically highlighted that this plan is expected to generate approximately 1 billion to 1.6 billion US dollars (about 7.1 billion to 11.4 billion yuan) in pre-tax non-core restructuring costs over the two-year period.
It is reported that the restructuring plan includes reducing 7,000 non-manufacturing management positions by the end of the 2027 fiscal year.
It is estimated that half of the costs will be incurred by the end of the 2026 fiscal year, and the remaining portion will be generated in the 2027 fiscal year.
Looking ahead to the new fiscal year, P&G holds a positive outlook. The company expects its total sales for the 2026 fiscal year to increase by 1% to 5% compared to the previous year. This includes a 1% gain from the net impact of foreign exchange rates, acquisitions, and divestitures. Organic sales will grow by 4% compared to last year.
In addition to business restructuring, P&G has also experienced frequent personnel changes this year. In March, P&G's subsidiaries in Japan, the Asia-Pacific, the Middle East, Africa, and other regions announced major executive reshuffles. In June, P&G announced that Colin Walsh, CEO of its Professional Beauty division, would step down on August 1, to be succeeded by John Brownlee. At the end of July, shortly before the release of its 2025 fiscal year results, P&G suddenly announced a leadership change. Although no specific reasons were given, the timing was quite sensitive, undoubtedly creating a subtle situation. It remains to be seen how the new leader, who will take office next year, will advance the established restructuring plan and lead P&G to achieve sustained growth.
Earlier, P&G had already begun to shrink its global footprint. This includes a complete withdrawal from Argentina, restructuring of its operations in Nigeria, selling the Sassoon brand and its related hair care business in the Greater China region, and discontinuing some local product lines in Latin America and Europe.
Facing the drastic changes in the global beauty industry, P&G's large-scale business volume serves as its competitive moat, but it also faces profound growth challenges. Against this backdrop, exiting certain markets, divesting businesses, and streamlining its structure precisely reflect its high-level strategic "disengagement". This is not a simple contraction, but a measure to optimize resource allocation on a global scale, retreating to advance and building a more certain new model for its resilient growth in the next phase.
