P&G, ready to cope with national currency�s backdown?

Focusing efforts on valuable brands within P&G portfolio and cutting production costs, as constant action, are few of the safety measures adopted by company representatives in the context of leu’s backdown against euro, Ramona Brad, external relation manager at P&G stated for Wall-Street.

“We cannot disclose the foreign currency exchange rate calculated at this year’s budget blueprint, but we can say that this level has not been brought to discussion. However, the expenses plan takes into account a certain level of volatility. The business blueprint is not made on a limited period of time, but on several years. In case of P&G, the plan is made for five years at least,” Ramona Brad added.

She pointed out that sale objectives and company’s budget are reset according to foreign currency exchange rate.
In the actual leu-euro context, P&G’s main objective is to provide same level of organic sales.

“Biggest concern of the company is a possible decline of consumers’ loyalty, linked to investments in different regions. Moreover, certain providers might experience major defaults, as it can happen to our clients as well,” external relation manager specified.

On the other hand, Brad is optimistic in national and international financial status upturn.

“Romania is though, partly cushioned from the financial squeeze because of the different banking climate. However, I believe that financial crisis is not the only one that dents purchase power, but also a certain internal instability, rumors, events that people observe,” Ramona Brad concluded.

Early September, Procter&Gamble said it will pump 100 million US dollars in the factory in Urlati, near Ploiesti, this being the first Greenfield project of the company in Romanian industry.

Later on, P&G representatives said that the investment’ size will depend on the climate that government create for business.

P&G posted in 2007 a 40% market share for detergent and beauty products, over 60% for baby care and personal care products and nearly 20% for oral care products.

Translated and adapted by Camelia Oancea.

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