P&G’s Baby, Feminine, and Family Care Had Robust 4Q15 Results



P&G’s baby, feminine, and family care business

Procter & Gamble’s (PG), or P&G, baby, feminine, and family care delivered strong results in 4Q15. The net revenue for this segment came in at $4.8 billion. It was 7% lower than 4Q14. However, organic sales for fiscal 2015[1. Year ending June 30, 2015] rose 3%. This was primarily due to the launch of new baby care premium products. It was also due to Always Discreet, Incontinence.

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P&G’s billion-dollar brands

P&G’s billion-dollar brands like Bounty and Charmin continued to improve structural economies. They helped in sales growth, especially in North America.

In addition, baby and feminine care innovation delivered strong growth in North America and Europe. At P&G’s 4Q15 earnings call, CEO Alan Lafley mentioned that within a year of Always Discreet’s launch, its share reached 7%–9% in the US, the United Kingdom, and France.

Changing consumer habits have increased the competition across the globe. Like P&G, Kimberly-Clark (KMB), Clorox (CLX), and Unilever (UL) focus on innovation and new technology to improve consumer value.

P&G’s focus on most profitable product categories

P&G is planning to simplify and reduce the number of agency relationships. The company plans to focus on upgrading agency capability to improve creative quality and communication effectiveness at a lower cost. For example, P&G’s aim is to focus on the profitable premium-tier tissues in Mexico, while deemphasizing conventional lower-value tissue products, according to comments by Alan Lafley.

P&G continues to strengthen its R&D (research and development) facilities by establishing new plants and equipment for new product development. Over the next 1–2 years, the company announced product upgrades across Pampers and Luvs in North America, Always, and Always Discreet. Lafley also announced the roll-out of new product variants under these brands over the next 1–2 years. Many of them are “unique and proprietary.”

P&G has exposure to the iShares S&P 100 ETF (OEF). It accounts for 1.90%[2. Updated as of August 3, 2015] of the total weight of the portfolio.


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