EasyEquities Blog

Know your Brands: Procter & Gamble Co/The

Written by Cay-Low Mbedzi | Oct 19, 2023 10:00:00 PM

In the usual course of events, whether it's personal care, family, child care, or fabric care, you may have used brands such as Vicks, Pampers, Puffs, and Oral-B. These are some of the brands under one of the world’s largest consumer goods companies, Procter & Gamble (P&G).

The Procter & Gamble Company manufactures and markets consumer products worldwide. The company offers products in beauty, grooming, health care, fabric & home care, baby, and feminine & family care. Its products are found in homes across the globe and are essential to the daily lives of millions of people.

P&G has been able to build a portfolio of some of the world's most trusted and loved brands, like Pampers, Gillette, Olay, Head & Shoulders, Oral-B, Vicks, Always and more.

Disclaimer: The brands may not be limited to the logos on the image and may change. The use of logos are for educational purposes only.

The leading segment in the business is fabric & home care, which accounts for 35% of net sales (32% of net earnings), followed by baby, feminine and family care, which constitutes 25% of net sales (23% of net earnings). Here's the full breakdown.

Financials, Dividends and Share Buyback 

Procter & Gamble's net sales in the first quarter of the fiscal year 2024 reached $21.9 billion, marking a six per cent increase from the previous year, with organic sales growing by seven per cent. Diluted net earnings per share saw a 17% increase, reaching $1.83. Operating cash flow was $4.9 billion, with net earnings at $4.6 billion. The company's adjusted free cash flow productivity was 97%.

The company's CEO said, “We remain committed to our integrated strategy of a focused product portfolio of daily-use categories,” adding, “We have confidence that this remains the right strategy to deliver balanced growth and value creation.”

The company returned $3.8 billion to shareholders through $2.3 billion in dividends and $1.5 billion in stock repurchases. It has a history of paying dividends.

Acquisitions:

After acquiring Tula (a luxury skincare brand) in 2022, P&G agreed to acquire Mielle Organics, a natural beauty and personal care product brand. The president of P&G’s multicultural hair care business said, “P&G Beauty’s role will be to support the Mielle Organics team with what they need to achieve their vision - including increased access in Black and Brown communities and investing in research and innovation.”

Earnings

Procter & Gamble Co/The is expected to release its second quarter results in January 2024. To invest in Procter & Gamble Co/The, you can head over to your EasyUSD account to buy a whole or fraction of a share.