Photo/P&G

On April 5th, local time, Procter & Gamble (P&G) announced the recall of 8.2 million bags of laundry detergent in the United States and Canada due to packaging defects. This recall affects various brands, including Tide, Gain, Ace, and Ariel, and involves products manufactured between September 2023 and February 2024.

The reason for the recall is related to safety issues with the child-resistant packaging of these laundry pods. According to reports from Reuters, the outer packaging near the zipper track can split open, potentially exposing children to the chemical substances in the detergent. This exposure could lead to seizures, unconsciousness, severe respiratory problems, eye injuries, and burns.

While there have been no confirmed injury cases directly linked to this packaging defect so far, P&G and the U.S. Consumer Product Safety Commission have received four reports of children in the United States coming into contact with the laundry detergent during the period when the recalled lots were sold. Among these reports, three cases involved ingestion. However, it remains uncertain whether the laundry pods in these reports indeed belong to the recalled batches.

The recalled products can be identified by their batch codes and include various scents and sizes. Approximately 8.2 million bags were sold in the United States, with an additional 56,741 bags sold in Canada.

For consumers who have purchased the recalled products, P&G advises them to keep the items out of reach and sight of children. They should also contact P&G’s Cincinnati headquarters for a full refund and a free replacement child-resistant bag for storing the detergent. It’s important to note that the detergent itself can still be safely used for laundry purposes.

In other news, on January 24th, Procter & Gamble reported its financial results for the 2024 fiscal second quarter (covering October to December 2023). During this period, the company achieved $21.441 billion in revenue, representing a 3% year-on-year increase. However, net profit declined by 12%, reaching $3.493 billion.

From an annual perspective, Procter & Gamble’s revenue in 2023 totaled $82 billion (approximately ¥593.2 billion), marking a historic milestone. Nevertheless, considering the performance fluctuations throughout the year, even a powerhouse like P&G couldn’t escape the industry-wide slowdown and profit challenges.

Examining revenue growth, all four quarters of 2023 showed single-digit increases. As for net profit, the 2023 fourth quarter (equivalent to the 2024 fiscal Q2) experienced a double-digit decline, a rare occurrence for P&G in the past five years.

Public records indicate that Procter & Gamble was registered in Ohio, USA, in 1905. As a global giant in the fast-moving consumer goods industry, the company sells its products through various channels, including bulk stores, e-commerce, grocery stores, membership clubs, pharmacies, department stores, distributors, wholesalers, baby supply stores, professional beauty shops (including airport duty-free stores), high-frequency stores, electronics retailers, and specialized channels across more than 180 countries and regions. Additionally, P&G directly engages with consumers through its product sales.

As of the closing bell on the 5th of April, P&G’s stock price rose by 0.42%, reaching $156.10 per share, resulting in a total market capitalization of $367.3 billion (approximately ¥26,570 billion).