Procter & Gamble Secures 37,000‑Square‑Meter Logistics Hub in Prague to Strengthen European Supply Chain

PG
December 19, 2025

Procter & Gamble signed a lease for a 37,000‑square‑meter logistics and production facility at CTPark Prague North in the Czech Republic, a move that aligns with its integrated superiority strategy to enhance supply‑chain resilience across Europe.

The new hub will serve as a regional distribution center, reducing transportation lead times and shipping costs for key markets such as Germany, Poland, and the Baltics, and will support the company’s goal of achieving BREEAM Outstanding certification for sustainability.

The lease was announced on December 19, 2025, with construction underway and a handover scheduled for September 2026; operations are expected to begin in 2027, aligning with P&G’s 2026 supply‑chain reorganization plan that targets $1.5 billion in annual savings.

P&G’s recent financial performance shows mixed results: Q3 FY2025 net sales fell 2% YoY to $19.8 billion, while Q4 FY2025 revenue rose to $20.9 billion, exceeding expectations. The company’s integrated superiority model, which focuses on product, brand, and retail execution, underpins the decision to invest in logistics infrastructure to support its core segments.

Management highlighted that the Prague facility will enable faster replenishment from European plants and improve inventory management, citing the need to mitigate supply‑chain disruptions experienced during the pandemic and ongoing global trade uncertainties.

The expansion comes amid a broader strategy to right‑size production, discontinue legacy brands, and potentially divest non‑core assets, as announced in the company’s 2026 guidance, which projects EPS of $6.83‑$7.10 and a focus on cost discipline.

Analysts noted that while the logistics investment signals confidence in long‑term growth, it also reflects the company’s response to competitive pressures and the need to maintain pricing power in a volatile market.

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