Consumer products colossus Procter & Gamble yesterday admitted it was unlikely to achieve the ambitious annual global growth targets of 6%-8% set by former chief executive Durk Jager.

Instead, P&G has elected for the more cautious goal of 4%-6%, though this should be regarded as "a floor, not a ceiling", said new chief executive A G Lafley.

But he warned that marketing, research and administrative spending would be flat this year, and below sales growth thereafter.

The new targets, said Lafley, reflect a harsher pricing environment plus a more realistic expectations of growth from new products and acquisitions.

Following the announcement P&G’s stock rose by 8%, from $61.88 to $66.88.

News source: Financial Times