PROCTER & GAMBLE cut its earnings and revenue forecast for the second time in three months as sluggish sales in its core markets coupled with unexpected currency moves hurt the consumer goods group.

Organic sales will increase by between 2 and 4 per cent, down from a previously expected range of 4 and 5 per cent, with foreign exchange moves expected to knock 4 per cent off the group’s net sales for the year, according to PG.

Bob McDonald, chairman and chief executive, said the company will focus on its 40 core markets as well as scaling back its plans in emerging markets, focusing on the 10 with the “highest growth potential”.

The move to stymie P&G’s expansion into new developing markets comes after Jon Moeller, chief financial officer, said the group may have tried to grow too fast in emerging markets while it grappled with problems in the US and other developed countries.

The new strategy comes as P&G is struggling to revive profit growth and win back the confidence of disillusioned investors after a string of mis-steps and setbacks.

P&G, long respected for its meticulous management, has triggered Wall Street discontent by losing market share, cutting its profit forecast, raising prices unsuccessfully and taking a $1.5 billion writedown on old acquisitions.

The world’s largest consumer goods maker by sales added to recent shareholder discontent after it cuts its “core earnings per share” forecast from a range of $0.79 to $0.85 to a range of $0.75 to $0.79.

Mr McDonald also dashed hopes of a share buyback as the group concentrated its efforts on maintaining its AA- credit rating.

Shares in the company, which owns brands including Pantene, Crest and Gillette, have fallen 3.9 per cent in the past year while its rivals Unilever and Colgate-Palmolive have risen by 7.1 per cent and 19.6 per cent respectively.

In a research note this week Ali Dibadj, analyst at AllianceBernstein, said: “As a stock, we struggle with the stark contrast between the enormous opportunities that exist at PG . . . and the company’s incredibly mediocre performance.”