The Procter & Gamble Company (PG)

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.

  1. Filings
  2. Company Profile

Business Summary

The Procter & Gamble Company (P&G) is a leading multinational consumer goods company. Founded in 1837 and incorporated in 1905, P&G provides a wide range of trusted, branded products across various categories, including beauty, grooming, health care, fabric & home care, and baby, feminine & family care. The company's mission is to improve consumers' lives with superior quality, performance, and value. P&G operates in approximately 180 countries and territories, with a significant presence in mass merchandisers, e-commerce, grocery stores, and other retail channels. P&G's competitive advantage lies in its strong brand portfolio, continuous innovation, and focus on consumer understanding. The company invests heavily in research and development to meet evolving consumer needs and leverages marketing strategies to build brand loyalty.

Key Statistics

  • Employees: 108,000 (as of June 30, 2024)
  • Geographic Footprint: Operates in ~70 countries, sells in ~180
  • Headquarters: Cincinnati, Ohio
  • Founded: 1837
  • Number of locations/facilities: 102 manufacturing sites globally (24 in the U.S.)
  • Revenue: $84.0 billion (FY2024)
  • Market Cap: $345 billion (as of December 31, 2023)
  • Key Subsidiaries/Brands: Head & Shoulders, Herbal Essences, Pantene, Olay, Old Spice, Gillette, Venus, Crest, Oral-B, Metamucil, Vicks, Ariel, Downy, Tide, Cascade, Mr. Clean, Swiffer, Luvs, Pampers, Always, Tampax, Bounty, Charmin

Leadership

  • CEO: Jon R. Moeller (Chairman, President and CEO)
  • CFO: Andre Schulten
  • Board Chair: Jon R. Moeller
  • Other Key Executives: Shailesh Jejurikar (COO), Gary A. Coombe (CEO - Grooming), Jennifer L. Davis (CEO - Health Care), Ma. Fatima D. Francisco (CEO - Baby, Feminine and Family Care), R. Alexandra Keith (CEO - Beauty), Sundar Raman (CEO - Fabric and Home Care), Victor Aguilar (Chief R&D Officer), Marc S. Pritchard (Chief Brand Officer), Balaji Purushothaman (Chief HR Officer), Susan Street Whaley (Chief Legal Officer)

Key Financial Metrics

  • Annual Revenue: $84.0 billion (FY2024)
  • Net Income: $14.9 billion (FY2024)
  • Market Cap: $345 billion (as of December 31, 2023)
  • Total Assets: $122.4 billion (FY2024)
  • Number of Employees: 108,000 (as of June 30, 2024)
  • Key Financial Highlights (FY2024): Net sales increased 2%; Organic sales increased 4%; Operating income increased 2%; Diluted EPS increased 2% to $6.02; Core EPS increased 12% to $6.59; Cash flow from operating activities increased 18% to $19.8 billion

Products and Services

P&G offers a diverse portfolio of products and services across several categories:

  • Beauty: Hair care (shampoos, conditioners, styling aids), skin and personal care (deodorants, cleansers, skin care)
  • Grooming: Appliances (electric shavers), blades and razors, pre- and post-shave products
  • Health Care: Oral care (toothbrushes, toothpaste), personal health care (over-the-counter medications, vitamins)
  • Fabric & Home Care: Laundry detergents, fabric enhancers, dishwashing products, surface cleaners
  • Baby, Feminine & Family Care: Diapers, baby wipes, feminine hygiene products, paper towels, tissues, toilet paper

Key Business Segments

P&G reports results across five segments:

  • Beauty: 18% of net sales, 18% of net earnings
  • Grooming: 8% of net sales, 9% of net earnings
  • Health Care: 14% of net sales, 14% of net earnings
  • Fabric & Home Care: 36% of net sales, 34% of net earnings
  • Baby, Feminine & Family Care: 24% of net sales, 25% of net earnings

Sales to Walmart Inc. and its affiliates represent 16% of total sales in FY2024.

Business Strategy

P&G's business strategy focuses on delivering sustainable value creation through balanced top- and bottom-line growth. The company prioritizes consumer-centric innovation, brand building, and operational efficiency. P&G's growth strategy involves: strengthening product superiority, expanding into new markets and channels (especially e-commerce), investing in research and development, and driving productivity improvements. The company also emphasizes environmental sustainability, digital acumen, and supply chain optimization as key focus areas.

Industry Context

P&G operates in the highly competitive consumer goods industry, competing with both global and local players. The company holds leadership positions in several categories and segments, often competing on product performance, brand recognition, and pricing. Key competitors vary by segment and include other multinational consumer goods companies as well as private-label brands.

Risk Factors

  • Macroeconomic Conditions: Global economic volatility, foreign exchange fluctuations, and changes in government policies can impact demand and profitability.
  • Supply Chain Disruptions: P&G's global supply chain is susceptible to disruptions from various factors, including natural disasters, geopolitical events, and supplier issues.
  • Competition: Intense competition from local and global players requires continuous innovation and effective marketing.
  • Cybersecurity: P&G relies heavily on IT systems and is vulnerable to cybersecurity incidents that could compromise data and operations.
  • Reputational Risk: Product recalls, negative publicity, or changing consumer perceptions can damage brand image and sales.

Last Updated

2024-08-05

(Generated from latest 10-K filing)