Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500 American multinational corporation headquartered in Downtown Cincinnati, Ohio[2] that manufactures a wide range of consumer goods. It is 5th in Fortune's Most Admired Companies 2011 list.[3] P&G is credited with many business innovations including brand management and the soap opera.
The Procter & Gamble Company (P&G) is a giant in the area of consumer goods. The leading maker of household products in the United States, P&G has operations in nearly 80 countries around the world and markets its nearly 300 brands in more than 160 countries; more than half of the company's revenues are derived overseas. Among its products, which fall into the main categories of fabric care, home care, beauty care, baby care, family care, health care, snacks, and beverages, are 16 that generate more than $1 billion in annual revenues: Actonel (osteoporosis treatment); Always (feminine protection); Ariel, Downy, and Tide (laundry care); Bounty (paper towels); Charmin (bathroom tissue); Crest (toothpaste); Folgers (coffee); Head & Shoulders, Pantene, and Wella (hair care); Iams (pet food); Olay (skin care); Pampers (diapers); and Pringles (snacks). Committed to remaining the leader in its markets, P&G is one of the most aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practices in corporate America--including extensive market research, the brand-management system, and employee profit-sharing programs--were first developed at Procter & Gamble.
The Procter & Gamble Company (P&G), incorporated in 1905, is focused on providing consumer packaged goods. The Company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores, the neighborhood stores, which serve many consumers in developing markets. It has on-the-ground operations in approximately 80 countries. As of June 30, 2010, P&G comprised of three Global Business Units (GBUs): Beauty and Grooming, Health and Well-Being and Household Care. Sales to Wal-Mart Stores, Inc. and its affiliates represent approximately 16% of its total revenue during the fiscal year ended June 30, 2010 (fiscal 2010). In August 2009, AnimalScan, LLC announced that it has acquired Iams Pet Imaging (IPI), LLC from The Procter & Gamble Company and ProScan Imaging. In October 2009, Warner Chilcott Plc completed the acquisition of the Company’s global branded prescription pharmaceutical business. In July 2010, Sara Lee Corporation completed the sale of its air care business to The Procter & Gamble Company.
Beauty
The Company’s female beauty brand, Olay is a facial skin care brand. It also operates in fragrances market, through its Dolce & Gabbana, Gucci and Hugo Boss fragrance brands. Its male personal care products include deodorants, face and shave preparation, hair and skin care and personal cleansing products. P&G’s beauty electronics and small home appliances are sold under the Braun brand in a number of markets around the world. Its primary focus in this area is electric hair removal devices, such as electric razors and epilators, where it holds approximately 30% of the male shavers market and 50% of the female epilators market.
Health and Well-Being
In the healthcare market it operates in various categories, such as feminine care, gastrointestinal, incontinence, rapid diagnostics, respiratory, toothbrush, toothpaste, water filtration, other oral care. In snacks and per care, the Company operates through its Pringles, Iams and Eukanuba brands. The vast majority of its pet care business is in North America.
Household Care
This segment is comprised of a variety of fabric care products, including laundry detergents, additives and fabric enhancers; home care products, including dishwashing liquids and detergents, surface cleaners and air fresheners, and batteries. The Company’s family care business is predominantly a North American business comprised primarily of the Bounty paper towel and Charmin toilet paper brands.
In March 2001 Procter & Gamble reached an agreement with the Coca-Cola Company to create a $4 billion joint venture designed to join Coke's Minute Maid brand and distribution network with P&G's Pringles chips and Sunny Delight drink brands. But Coca-Cola pulled out of the deal just a few months later, having decided to try to build the Minute Maid brand on its own. Despite this setback, P&G succeeded in paring back its ever more marginal food business by selling the Jif peanut butter and Crisco shortening brands to the J.M. Smucker Company. The deal, completed in May 2002, was valued at about $900 million. In November 2001, meantime, P&G consummated its largest acquisition yet, buying the Clairol hair-care business from Bristol-Myers Squibb Company for nearly $5 billion in cash. The deal melded well with P&G's goal of securing faster-growing, more profitable product areas, such as beauty and hair care. Also acquired in 2001 was Dr. John's SpinBrush, maker of a battery-powered toothbrush featuring spinning bristles that at $5 was much cheaper than existing electric toothbrushes. Soon thereafter, the newly named Crest SpinBrush was successfully launched. Also brought out in 2001 were Crest Whitestrips, a tooth whitening product. These two new products helped increase global sales of the Crest brand by 50 percent, propelling it past the $1 billion mark during fiscal 2002.
In July 2002 Pepper again retired, and Lafley took on the additional post of chairman. Results for the fiscal year ending in June 2003 provided strong evidence that Lafley had engineered a remarkable turnaround. In its best performance in nearly a decade, Procter & Gamble posted an 8 percent increase in net sales, to $43.38 billion, and a 19 percent jump in net earnings, to $5.19 billion. P&G built on these results with another blockbuster acquisition--once again the largest in company history. In September 2003 the company acquired a controlling interest in Wella AG for $6.27 billion. Based in Germany, Wella was a leading maker of professional hair-care products with 2002 revenues of $3.6 billion. The deal provided P&G with an entrée into the salon market, where about half of Wella's sales were generated. Procter & Gamble also bolstered its dental care line by acquiring the Glide brand of dental floss from W.L. Gore & Associates, Inc. In September 2003, under a marketing and distribution agreement with AstraZeneca PLC, P&G began selling Prilosec OTC, an over-the-counter version of AstraZeneca's blockbuster heartburn medication, Prilosec.
In April 2004 Procter & Gamble reached an agreement to sell its Sunny Delight and Punica drinks businesses to J.W. Childs Associates LP, a private-equity firm in Boston. This further paring of the foods business left P&G with just two main food brands, Pringles and Folgers. The snacks and beverages unit accounted for only 7 percent of the company's total revenues in fiscal 2004. At the beginning of fiscal 2005 P&G realigned its business units, shifting its five previous units into three: global beauty care; global health, baby, and family care; and global household care. Pringles and Folgers were placed within the latter unit.
Sales for fiscal 2004 surged 19 percent, surpassing the $50 billion mark for the first time. Net earnings jumped 25 percent, hitting $6.48 billion. The newly invigorated company continued its streak of paying dividends without interruption since its 1890 incorporation, and it also increased its dividend for the 48th straight year.
Principal Subsidiaries: Cosmopolitan Cosmetics GmbH (Germany); The Folger Coffee Company; Giorgio Beverly Hills, Inc.; The Iams Company; Max Factor & Co.; Noxell Corporation; Olay Company, Inc.; P&G-Clairol, Inc.; Procter & Gamble Pharmaceuticals, Inc.; PUR Water Purification Products, Inc.; Tambrands Inc.; Vick International Corporation; Vidal Sassoon Co.; Procter & Gamble Australia Proprietary Limited; Procter & Gamble Inc. (Canada); Procter & Gamble France S.N.C.; Wella AG (Germany); Procter & Gamble India Holdings, Inc.; Procter & Gamble Italia, S.p.A. (Italy); Procter & Gamble Nederland B.V. (Netherlands); Procter & Gamble Switzerland SARL; Procter & Gamble Limited (U.K.); Thomas Hedley & Co. Limited (U.K.); Yardley of London Ltd. (U.K.).
Principal Operating Units: Global Beauty Care; Global Health, Baby, and Family Care; Global Household Care.
Principal Competitors: Unilever; Johnson & Johnson; Kimberly-Clark Corporation; Sara Lee Corporation; Kraft Foods Inc.; L'Oreal SA; Colgate-Palmolive Company.
OVERALL
Beta: 0.51
Market Cap (Mil.): $186,570.09
Shares Outstanding (Mil.): 2,791.29
Annual Dividend: 2.10
Yield (%): 3.14
FINANCIALS
PG Industry Sector
P/E (TTM): 17.59 35.93 36.23
EPS (TTM): 6.53 -- --
ROI: 10.46 1.32 8.03
ROE: 17.16 2.95 12.95
Statistics:
Public Company
Incorporated: 1890
Employees: 110,000
Sales: $51.41 billion (2004)
Stock Exchanges: New York National (NSX) Amsterdam Paris Basel Geneva Lausanne Zürich Frankfurt Brussels
Ticker Symbol: PG
NAIC: 311111 Dog and Cat Food Manufacturing; 311919 Other Snack Food Manufacturing; 311920 Coffee and Tea Manufacturing; 322291 Sanitary Paper Product Manufacturing; 325412 Pharmaceutical Preparation Manufacturing; 325611 Soap and Other Detergent Manufacturing; 325612 Polish and Other Sanitation Good Manufacturing; 325620 Toilet Preparation Manufacturing; 339994 Broom, Brush, and Mop Manufacturing
Key Dates:
1837: William Procter and James Gamble form Procter & Gamble, a partnership in Cincinnati, Ohio, to manufacture and sell candles and soap.
c. 1851: Company's famous moon-and-stars symbol is created.
1878: P&G introduces White Soap, soon renamed Ivory.
1890: The Procter & Gamble Company is incorporated.
1911: Crisco, the first all-vegetable shortening, debuts.
1931: Brand management system is formally introduced.
1946: P&G introduces Tide laundry detergent.
1955: Crest toothpaste makes its debut.
1957: Charmin Paper Company is acquired.
1961: Test marketing of Pampers disposable diapers begins.
1963: Company acquires the Folgers coffee brand.
1982: Norwich-Eaton Pharmaceuticals is acquired.
1985: P&G purchases Richardson-Vicks Company, owner of the Vicks, NyQuil, and Oil of Olay brands.
1988: Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, is acquired.
1991: Max Factor and Betrix cosmetic and fragrance lines are bought from Revlon, Inc.
1992: Pantene Pro-V shampoo is introduced.
1993: Major restructuring is launched, involving 13,000 job cuts and 30 plant closures.
1997: Company acquires Tambrands, Inc., maker of the Tampax line of tampons.
1998: Organization 2005 restructuring is launched.
1999: Premium pet food maker Iams Company is purchased.
2001: P&G acquires the Clairol hair-care business from Bristol-Myers Squibb Company.
2002: Jif peanut butter and Crisco shortening brands are divested.
2003: Company acquires a controlling interest in German hair-care firm Wella AG.
Name Age Since Current Position
Robert McDonald 57 2010 Chairman of the Board, President, Chief Executive Officer
Jon Moeller 46 2009 Chief Financial Officer
Werner Geissler 57 2007 Vice Chairman - Global Operations
E. Dimitri Panayotopoulos 58 2011 Vice Chairman--Global Business Units
Robert Steele 55 2011 Vice Chairman - Health Care Strategy
Edward Shirley 54 2008 Vice Chairman - Global Beauty & Grooming
Charlie Pierce 2011 Group President - Global Oral Care
Steve Bishop 2011 Group President - Global Feminine Care
Tom Finn 2011 President - Global Health Care
Valarie Sheppard 46 2005 Senior Vice President, Comptroller, Global Household Care Finance and Accounting
Dan Rajczak 2011 Senior Vice President - Global Snacks and Pet Care
Filippo Passerini 53 2003 Chief Information Officer, President - Global Business Services
Bruce Brown 52 2008 Chief Technology Officer
Deborah Majoras 47 2010 Chief Legal Officer, Secretary
R. Keith Harrison 62 2001 Global Product Supply Officer
Moheet Nagrath 51 2008 Global Human Resources Officer
Marc Pritchard 50 2008 Global Brand Building Officer
Robert Fregolle 53 2009 Global Customer Business Development Officer
Christopher Hassall 56 2009 Global External Relations Officer
Scott Cook 58 2000 Director
Ernesto Zedillo 59 2001 Director
Johnathan Rodgers 64 2001 Director
Margaret Whitman 54 2011 Director
Patricia Woertz 57 2008 Director
Kenneth Chenault 59 2008 Director
Mary Wilderotter 56 2009 Director
Angela Braly 49 2009 Director
Susan Desmond-Hellmann 53 2010 Director
W. James McNerney 61 2007 Presiding Director
Address:
One Procter & Gamble Plaza
Cincinnati, Ohio 45202-3315
U.S.A.
The Procter & Gamble Company (P&G) is a giant in the area of consumer goods. The leading maker of household products in the United States, P&G has operations in nearly 80 countries around the world and markets its nearly 300 brands in more than 160 countries; more than half of the company's revenues are derived overseas. Among its products, which fall into the main categories of fabric care, home care, beauty care, baby care, family care, health care, snacks, and beverages, are 16 that generate more than $1 billion in annual revenues: Actonel (osteoporosis treatment); Always (feminine protection); Ariel, Downy, and Tide (laundry care); Bounty (paper towels); Charmin (bathroom tissue); Crest (toothpaste); Folgers (coffee); Head & Shoulders, Pantene, and Wella (hair care); Iams (pet food); Olay (skin care); Pampers (diapers); and Pringles (snacks). Committed to remaining the leader in its markets, P&G is one of the most aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practices in corporate America--including extensive market research, the brand-management system, and employee profit-sharing programs--were first developed at Procter & Gamble.
The Procter & Gamble Company (P&G), incorporated in 1905, is focused on providing consumer packaged goods. The Company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores, the neighborhood stores, which serve many consumers in developing markets. It has on-the-ground operations in approximately 80 countries. As of June 30, 2010, P&G comprised of three Global Business Units (GBUs): Beauty and Grooming, Health and Well-Being and Household Care. Sales to Wal-Mart Stores, Inc. and its affiliates represent approximately 16% of its total revenue during the fiscal year ended June 30, 2010 (fiscal 2010). In August 2009, AnimalScan, LLC announced that it has acquired Iams Pet Imaging (IPI), LLC from The Procter & Gamble Company and ProScan Imaging. In October 2009, Warner Chilcott Plc completed the acquisition of the Company’s global branded prescription pharmaceutical business. In July 2010, Sara Lee Corporation completed the sale of its air care business to The Procter & Gamble Company.
Beauty
The Company’s female beauty brand, Olay is a facial skin care brand. It also operates in fragrances market, through its Dolce & Gabbana, Gucci and Hugo Boss fragrance brands. Its male personal care products include deodorants, face and shave preparation, hair and skin care and personal cleansing products. P&G’s beauty electronics and small home appliances are sold under the Braun brand in a number of markets around the world. Its primary focus in this area is electric hair removal devices, such as electric razors and epilators, where it holds approximately 30% of the male shavers market and 50% of the female epilators market.
Health and Well-Being
In the healthcare market it operates in various categories, such as feminine care, gastrointestinal, incontinence, rapid diagnostics, respiratory, toothbrush, toothpaste, water filtration, other oral care. In snacks and per care, the Company operates through its Pringles, Iams and Eukanuba brands. The vast majority of its pet care business is in North America.
Household Care
This segment is comprised of a variety of fabric care products, including laundry detergents, additives and fabric enhancers; home care products, including dishwashing liquids and detergents, surface cleaners and air fresheners, and batteries. The Company’s family care business is predominantly a North American business comprised primarily of the Bounty paper towel and Charmin toilet paper brands.
In March 2001 Procter & Gamble reached an agreement with the Coca-Cola Company to create a $4 billion joint venture designed to join Coke's Minute Maid brand and distribution network with P&G's Pringles chips and Sunny Delight drink brands. But Coca-Cola pulled out of the deal just a few months later, having decided to try to build the Minute Maid brand on its own. Despite this setback, P&G succeeded in paring back its ever more marginal food business by selling the Jif peanut butter and Crisco shortening brands to the J.M. Smucker Company. The deal, completed in May 2002, was valued at about $900 million. In November 2001, meantime, P&G consummated its largest acquisition yet, buying the Clairol hair-care business from Bristol-Myers Squibb Company for nearly $5 billion in cash. The deal melded well with P&G's goal of securing faster-growing, more profitable product areas, such as beauty and hair care. Also acquired in 2001 was Dr. John's SpinBrush, maker of a battery-powered toothbrush featuring spinning bristles that at $5 was much cheaper than existing electric toothbrushes. Soon thereafter, the newly named Crest SpinBrush was successfully launched. Also brought out in 2001 were Crest Whitestrips, a tooth whitening product. These two new products helped increase global sales of the Crest brand by 50 percent, propelling it past the $1 billion mark during fiscal 2002.
In July 2002 Pepper again retired, and Lafley took on the additional post of chairman. Results for the fiscal year ending in June 2003 provided strong evidence that Lafley had engineered a remarkable turnaround. In its best performance in nearly a decade, Procter & Gamble posted an 8 percent increase in net sales, to $43.38 billion, and a 19 percent jump in net earnings, to $5.19 billion. P&G built on these results with another blockbuster acquisition--once again the largest in company history. In September 2003 the company acquired a controlling interest in Wella AG for $6.27 billion. Based in Germany, Wella was a leading maker of professional hair-care products with 2002 revenues of $3.6 billion. The deal provided P&G with an entrée into the salon market, where about half of Wella's sales were generated. Procter & Gamble also bolstered its dental care line by acquiring the Glide brand of dental floss from W.L. Gore & Associates, Inc. In September 2003, under a marketing and distribution agreement with AstraZeneca PLC, P&G began selling Prilosec OTC, an over-the-counter version of AstraZeneca's blockbuster heartburn medication, Prilosec.
In April 2004 Procter & Gamble reached an agreement to sell its Sunny Delight and Punica drinks businesses to J.W. Childs Associates LP, a private-equity firm in Boston. This further paring of the foods business left P&G with just two main food brands, Pringles and Folgers. The snacks and beverages unit accounted for only 7 percent of the company's total revenues in fiscal 2004. At the beginning of fiscal 2005 P&G realigned its business units, shifting its five previous units into three: global beauty care; global health, baby, and family care; and global household care. Pringles and Folgers were placed within the latter unit.
Sales for fiscal 2004 surged 19 percent, surpassing the $50 billion mark for the first time. Net earnings jumped 25 percent, hitting $6.48 billion. The newly invigorated company continued its streak of paying dividends without interruption since its 1890 incorporation, and it also increased its dividend for the 48th straight year.
Principal Subsidiaries: Cosmopolitan Cosmetics GmbH (Germany); The Folger Coffee Company; Giorgio Beverly Hills, Inc.; The Iams Company; Max Factor & Co.; Noxell Corporation; Olay Company, Inc.; P&G-Clairol, Inc.; Procter & Gamble Pharmaceuticals, Inc.; PUR Water Purification Products, Inc.; Tambrands Inc.; Vick International Corporation; Vidal Sassoon Co.; Procter & Gamble Australia Proprietary Limited; Procter & Gamble Inc. (Canada); Procter & Gamble France S.N.C.; Wella AG (Germany); Procter & Gamble India Holdings, Inc.; Procter & Gamble Italia, S.p.A. (Italy); Procter & Gamble Nederland B.V. (Netherlands); Procter & Gamble Switzerland SARL; Procter & Gamble Limited (U.K.); Thomas Hedley & Co. Limited (U.K.); Yardley of London Ltd. (U.K.).
Principal Operating Units: Global Beauty Care; Global Health, Baby, and Family Care; Global Household Care.
Principal Competitors: Unilever; Johnson & Johnson; Kimberly-Clark Corporation; Sara Lee Corporation; Kraft Foods Inc.; L'Oreal SA; Colgate-Palmolive Company.
OVERALL
Beta: 0.51
Market Cap (Mil.): $186,570.09
Shares Outstanding (Mil.): 2,791.29
Annual Dividend: 2.10
Yield (%): 3.14
FINANCIALS
PG Industry Sector
P/E (TTM): 17.59 35.93 36.23
EPS (TTM): 6.53 -- --
ROI: 10.46 1.32 8.03
ROE: 17.16 2.95 12.95
Statistics:
Public Company
Incorporated: 1890
Employees: 110,000
Sales: $51.41 billion (2004)
Stock Exchanges: New York National (NSX) Amsterdam Paris Basel Geneva Lausanne Zürich Frankfurt Brussels
Ticker Symbol: PG
NAIC: 311111 Dog and Cat Food Manufacturing; 311919 Other Snack Food Manufacturing; 311920 Coffee and Tea Manufacturing; 322291 Sanitary Paper Product Manufacturing; 325412 Pharmaceutical Preparation Manufacturing; 325611 Soap and Other Detergent Manufacturing; 325612 Polish and Other Sanitation Good Manufacturing; 325620 Toilet Preparation Manufacturing; 339994 Broom, Brush, and Mop Manufacturing
Key Dates:
1837: William Procter and James Gamble form Procter & Gamble, a partnership in Cincinnati, Ohio, to manufacture and sell candles and soap.
c. 1851: Company's famous moon-and-stars symbol is created.
1878: P&G introduces White Soap, soon renamed Ivory.
1890: The Procter & Gamble Company is incorporated.
1911: Crisco, the first all-vegetable shortening, debuts.
1931: Brand management system is formally introduced.
1946: P&G introduces Tide laundry detergent.
1955: Crest toothpaste makes its debut.
1957: Charmin Paper Company is acquired.
1961: Test marketing of Pampers disposable diapers begins.
1963: Company acquires the Folgers coffee brand.
1982: Norwich-Eaton Pharmaceuticals is acquired.
1985: P&G purchases Richardson-Vicks Company, owner of the Vicks, NyQuil, and Oil of Olay brands.
1988: Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, is acquired.
1991: Max Factor and Betrix cosmetic and fragrance lines are bought from Revlon, Inc.
1992: Pantene Pro-V shampoo is introduced.
1993: Major restructuring is launched, involving 13,000 job cuts and 30 plant closures.
1997: Company acquires Tambrands, Inc., maker of the Tampax line of tampons.
1998: Organization 2005 restructuring is launched.
1999: Premium pet food maker Iams Company is purchased.
2001: P&G acquires the Clairol hair-care business from Bristol-Myers Squibb Company.
2002: Jif peanut butter and Crisco shortening brands are divested.
2003: Company acquires a controlling interest in German hair-care firm Wella AG.
Name Age Since Current Position
Robert McDonald 57 2010 Chairman of the Board, President, Chief Executive Officer
Jon Moeller 46 2009 Chief Financial Officer
Werner Geissler 57 2007 Vice Chairman - Global Operations
E. Dimitri Panayotopoulos 58 2011 Vice Chairman--Global Business Units
Robert Steele 55 2011 Vice Chairman - Health Care Strategy
Edward Shirley 54 2008 Vice Chairman - Global Beauty & Grooming
Charlie Pierce 2011 Group President - Global Oral Care
Steve Bishop 2011 Group President - Global Feminine Care
Tom Finn 2011 President - Global Health Care
Valarie Sheppard 46 2005 Senior Vice President, Comptroller, Global Household Care Finance and Accounting
Dan Rajczak 2011 Senior Vice President - Global Snacks and Pet Care
Filippo Passerini 53 2003 Chief Information Officer, President - Global Business Services
Bruce Brown 52 2008 Chief Technology Officer
Deborah Majoras 47 2010 Chief Legal Officer, Secretary
R. Keith Harrison 62 2001 Global Product Supply Officer
Moheet Nagrath 51 2008 Global Human Resources Officer
Marc Pritchard 50 2008 Global Brand Building Officer
Robert Fregolle 53 2009 Global Customer Business Development Officer
Christopher Hassall 56 2009 Global External Relations Officer
Scott Cook 58 2000 Director
Ernesto Zedillo 59 2001 Director
Johnathan Rodgers 64 2001 Director
Margaret Whitman 54 2011 Director
Patricia Woertz 57 2008 Director
Kenneth Chenault 59 2008 Director
Mary Wilderotter 56 2009 Director
Angela Braly 49 2009 Director
Susan Desmond-Hellmann 53 2010 Director
W. James McNerney 61 2007 Presiding Director
Address:
One Procter & Gamble Plaza
Cincinnati, Ohio 45202-3315
U.S.A.