Sector: Consumer Staples|Industry: Household & Personal Products|Market Cap: $414.56B|Employees: 108K
Procter & Gamble (P&G) is a leading multinational consumer goods company focused on providing trusted, branded products. Its primary revenue streams come from sales in approximately 180 countries and territories, with key markets including the US, China, and Europe. P&G's competitive advantages include strong brands, superior product quality, and efficient global operations.
Net sales increased by only 1% to $20.2 billion in Q1 2024, primarily due to a 3% pricing increase offset by a 2% negative impact from foreign exchange. Unit volume remained flat, indicating challenges in driving organic growth.
Gross margin expanded by 300 basis points to 51.2% of net sales, exceeding expectations. This improvement was primarily attributed to productivity gains and lower commodity costs, partially offset by unfavorable product mix and foreign exchange.
Selling, general, and administrative expenses increased by 9% to $5.9 billion, increasing as a percentage of net sales by 210 basis points. This rise in SG&A expenses partially offset the positive impact of gross margin expansion on operating income.