Procter & Gamble: Global Giant in Household, Personal Products
The Procter & Gamble Company, or P&G, is the largest household and personal products company in the world. It was established in 1837 by William Procter and James Gamble.
Why Estée Lauder’s Margins and Profitability Are Rising
Despite currency headwinds, Estée Lauder’s (EL) worldwide gross profit margin increased to 80.3% in fiscal 2014 from 80.1% in fiscal 2013.
Procter & Gamble Divestitures: Is 43-Brand Coty Deal the Last?
Brand divestitures, numbering ~93 out of a possible 100, according to last year’s announcement, will enable Procter & Gamble to focus on its core portfolio where it’s more market dominant.
Italy’s Inflation Rate Rose in August: EWI Fell 0.40%
According to the August 31 release by the ISTAT, the EU’s harmonized inflation rate in Italy rose to an impressive 0.50% in August on a YoY (year-over-year) basis.
What Are the Trends in Facebook’s Largest Advertising Category?
Business intelligence firm eMarketer estimates that CPG brands spent more than $7.0 billion on digital advertising in 2017, compared with $6.0 billion in 2016.
EWU Rises as Bank of England Holds Firm on Interest Rates
The Bank of England’s MPC voted to hold interest rates at 0.5%, which strengthened the pound sterling against the euro and dollar. The EWU rose by 0.89%.
What’s So Special About Specialty Tea?
According to the Tea Association of the USA, the specialty tea segment wholesale value increased to an estimated $1.9 billion in 2014, up 9.8% from 2013.
How Colgate Is Maintaining Margins in the Face of Headwinds
Colgate’s worldwide gross profit margin fell to 58.5% in 2014 from 58.6% in 2013.
Is Google Considering Bypassing Advertising Middlemen?
Alphabet’s (GOOGL) Google is one of the world’s largest digital advertising platforms.
How IBM’s Global Business Services Unit Is Doing
IBM’s (IBM) Global Business Services unit, which represents ~21% of its total business, comprises its consulting, global business services, and application management offerings.
Colgate-Palmolive Stock Rose on May 17
Colgate-Palmolive (CL) stock rose more than 7% on May 17, 2017, before closing at $75.69—up ~5.7% due to rumors that the company is for sale.
Coca-Cola and PepsiCo by Portfolio: A Better Choice Strategy
Nonalcoholic beverage companies see tremendous opportunities in the better-for-you product categories.
Looking at the Portfolio of the Columbia European Equity Fund
The Columbia European Equity Fund (AXEAX) invested in 56 holdings in September 2016, and it was managing $449 million in assets.
Should You Remain Invested in the Columbia European Equity Fund?
The Columbia European Equity Fund Class A (AXEAX) has fallen 6.6% year-to-date, emerging as a below-average performer in the group of 12 funds under review.
Sector Composition of the Columbia European Equity Fund
The Columbia European Equity Fund Class A (AXEAX) invests in “equity securities of European companies that are believed to offer growth potential.”
Why Are Retail Sales Low in the United Kingdom?
The Office of National Statistics published the retail sales for June at a six-month low. Retail sales fell by 0.9% on a month-over-month basis.
Why Coca-Cola Is Focusing on Still Beverages
In January 2016, Coca-Cola announced the acquisition of a minority stake in Chi Limited, Nigeria’s leading dairy, juice, and snacks company.
What Is Cyclical Investing?
When we say that a stock is cyclical, it means that its price has a sizable correlation with the phases of the business cycle.
How Colgate Improved Market Share in Its Asia Segment in 1Q16
Colgate’s (CL) Asia segment’s net revenue decreased 2.3% to $0.6 billion in 1Q16.
Productivity Savings Improved Procter & Gamble’s Operating Margin in Fiscal 3Q16
P&G reported a gross profit margin increase of 250 basis points to 49.8% in fiscal 3Q16, as compared to fiscal 3Q15.
What Happened to Procter & Gamble’s Baby Care Segment in Fiscal 3Q16?
Net revenue from P&G’s Baby, Feminine, and Family Care segment came in at $4.5 billion in fiscal 3Q16. This was 7.9% lower than in fiscal 3Q15.
Financials Hurt AXEAX in 1Q16
The Columbia European Equity Fund – Class A (AXEAX) fell 3.7% in 1Q16, making it a below-average performer among the 12 funds in this review.
Sector Composition Changes in AXEAX until 1Q16
AXEAX was invested across 69 holdings as of March 2016, seven more than a quarter ago. It was managing assets worth $515.6 million as of March.
Will Negative Foreign Exchange Affect Procter & Gamble in 3Q16?
Since December 2015, FX (foreign exchange) headwinds have increased $0.3 billion after tax. That includes devaluations in Argentina, Russia, and Mexico.
The Lowdown on Colgate’s Online Initiatives in Personal and Home Care
In Brazil, 70% of women are in the range of 18–49 years old, and Colgate has a lower CPM (cost per thousand) than TV for this group—60% of the cost.
Colgate’s Notion of Consumer Engagement, Brand Penetration
Colgate is adding the greatest number of new shoppers among fast-moving consumer goods companies. Most are in India.
The Story behind Colgate-Palmolive’s Commercial Strategies
Colgate-Palmolive’s global market share is ~45%. It is the leading toothpaste compared to Oral-B and Close-up, especially in emerging markets like India.
Why Ready-to-Drink Tea Offers Compelling Growth Prospects
The growing demand for ready-to-drink tea and coffee reflects the need for on-the-go, healthier beverage options.
Estée Lauder’s Aveda Haircare Brand’s Healthy Growth in 2Q16
Estée Lauder’s (EL) haircare segment’s revenue increased 8.7% in reported terms and 14% on a constant-currency basis to $0.15 billion in fiscal 2Q16.
Why Quantitative Metrics Don’t Favor AXEAX
From a purely NAV (net asset value) return standpoint, AXEAX was an above-average performer for the one-year period until March 15, 2016. It was placed fifth for the period among its peer group.
How Has the Calvert International Equity Fund Performed?
From a purely NAV (net asset value) return standpoint, the CWVGX had a forgettable showing in both the one-year period until February 29 as well as in 2015.
AXEAX: What Should We Be Concerned about in 2016?
Among its peer group, the Columbia European Equity Fund (AXEAX) is a comparatively smaller fund.
AXEAX’s Portfolio Holdings through November 2015
AXEAX was invested across 63 holdings as of November 2015, and it was managing assets worth $558.6 million.
P&G’s Gillette Files a Lawsuit against Dollar Shave Club
P&G alleges that Dollar Shave Club is violating Gillette’s intellectual property by selling its razors.
Weighing Clorox’s Strengths and Opportunities
Clorox (CLX) has a strong research and development (or R&D) team and devotes significant resources and attention to product development.
European Central Bank’s Monetary Policy: Why the Disappointment?
When monetary policy is eased, domestic currency can be expected to weaken.
Understanding Clorox’s Lifestyle Product Segment
Clorox’s Lifestyle segment’s revenue increased 1.5% to $1 billion in fiscal 2015 compared to $0.9 billion in fiscal 2014. The increase was primarily due to higher shipments in natural personal care.
Why Clorox’s Marketing Strategies Are Reaching More Households
Clorox’s (CLX) SG&A expenses increased 5.3% in fiscal 2015 compared to fiscal 2014. The increase was primarily due to increased advertising and marketing programs.
Coty Inc.’s Heritage and Power Brand Portfolio
Coty’s biggest licensed brand in the global mass skin and beauty care segment, Adidas maintains a significant presence in deodorants. It faces stiff global competition from Unilever’s Axe deodorants.
P&G’s Efforts to Improve Productivity in Coming Quarters
In February 2012, P&G planned to reduce its non-manufacturing overheads by 10% by June 2016. But the company since increased the productivity target to 22%.
P&G’s Grooming and Hair Care Brands Lead Market
P&G’s Gillette, Fusion, and Venus are its largest male and female grooming brands. It has continued to grow with ProGlide and FlexBall in the US.
Colgate’s Efforts to Engage Consumers to Build Brand Awareness
In order to attract consumers in retail stores, Colgate has increased its commercial investment in advertising, promotions, trade spending, and creative brand building.
How Colgate is Gaining Share in Key Global Markets
Colgate faces stiff competition from large international and local players worldwide. However, the company aims to have a disciplined approach to pricing management.
Colgate’s Recent Brand Innovations to Drive Growth
Colgate’s innovation for whitening teeth behind its Optic White brand increased its market share in North America to 19.3% in 2Q15.
Estée Lauder’s Heritage of Innovation
Estée Lauder believes in a strong research and development function for an innovative product pipeline. The company’s research and development expense for fiscal 2014 came in at $0.2 billion, or 1.8% of net sales.
Estée Lauder’s Gains in the Hair Care Business
Estée Lauder’s Aveda brand manufactures innovative plant-based hair care products. This helps to attract customers and adds to Estée Lauder’s brand value.
Why P&G’s CEO Is Focused on Value Creation over Growth
At the 4Q15 earnings call, P&G’s CEO repeatedly emphasized the company’s focus on “value creation” and “sustainable growth” for its multiple brands and segments.
P&G’s Health Care Business Had the Highest Organic Sales Growth
P&G’s health care segment’s organic sales rose 4% in fiscal 2015—the highest among all of the product categories. The net revenue for 4Q15 came in at $1.7 billion.
Colgate Has the Highest Brand Penetration in the World
Colgate has the highest brand penetration in the world. At a brand penetration rate of 64.6%, Colgate reaches more than half the households in the world, more than even Coca-Cola.
Colgate’s World of Care through Brand Innovation
Colgate has several consumer innovation centers. These primarily look at consumer behavior for inspiring new products and their variants.
What Are Colgate’s Key Growth Drivers?
Despite difficult economic conditions, Colgate delivered higher organic growth and profitability for the year 2014.
Colgate’s Oral Care Business Is the Jewel in Its Crown
Colgate estimated its share of the global toothpaste market and the global manual toothbrush market at 44.4% and 33.4%, respectively, in 2014.
How Much of the Market Share Do Colgate’s Leading Brands Have?
In North America, innovations in the Colgate Optic White Franchise increased market share of toothpaste from 5.3% to 5.6% in 2014.
Analyzing Colgate’s Competitive Position
As the consumer staples (XLP) sector is highly competitive, Colgate faces local as well as global competition from various local and international players worldwide.
Colgate-Palmolive Is a Leading Fast-Moving Consumer Goods Firm
Colgate-Palmolive is a multinational consumer staples (XLP) firm, focused on the production, distribution, and provision of household products.
Procter & Gamble: Strategies to Improve Long-Term Profitability
Procter & Gamble continues to look at large developing markets where it thinks it can win enough market share to take a leadership position.
Procter & Gamble: Successes, Weaknesses along the Road to Success
Procter & Gamble aims to harness opportunities in developing countries like China, India, and Russia to enhance its market share as well as stabilize its top-line growth.
Procter & Gamble Eyeing Opportunities in Emerging Markets
Organic revenue grew by 1% or more in all segments of emerging markets in 3Q15, except for in the Beauty segment. Growth was driven by innovations and pricing.
Procter & Gamble: Beauty Segment Sales Trail Overall Growth
Procter & Gamble’s Beauty segment includes products such as deodorants, cosmetics, personal cleansing, skin care, and hair care.
Why Procter & Gamble Dominates in Grooming Products
In the six months ending December 31, 2014, P&G’s net sales stood at $40.3 billion. Of this, 9.6% came from the Grooming segment.
How Innovation is Helping Procter & Gamble Develop Premium Brands
In 2001, P&G established an innovation strategy program called “Connect and Develop.” The program has allowed the company to better understand consumer behaviour.
What Are the Drivers Affecting Procter & Gamble’s Profitability?
Last August, P&G announced it was working on exit options for ~100 brands to improve sales and profitability. All of the brands contributing little to growth will be disposed of.
Procter & Gamble Benefits from A.G. Lafley’s Return as CEO
Lafley moved to close the gap between P&G’s high prices and those of competitors such as Colgate-Palmolive (CL) and Kimberly-Clark (KMB). He also introduced new low-price products.
What Drives Procter & Gamble’s Growth?
The emerging markets of Asia, Eastern Europe, and Latin America offer ample growth opportunities for the consumer staples sector.
Procter & Gamble: A Brand Marketing Pioneer
P&G is one of the world’s biggest advertisers. The company has defined many of the marketing strategies used globally.
Crest and Oral-B: Stars in Procter & Gamble’s Health Care Segment
The Health Care segment is P&G’s smallest segment. The segment’s net revenue for the year ending June 30, 2014, was $7.8 billion, or 9.5% of the company’s total net revenue.
Procter & Gamble: Global Leader in Fabric Care and Home Care
P&G’s Fabric Care and Home Care segment’s annual revenue was reported to be $26.1 billion in fiscal 2014. It contributed 31.7% of the company’s total net sales.
An Overview of Procter & Gamble’s 5 Segments, Product Categories
Of its five business segments, the majority of P&G’s sales and earnings are derived from its Fabric Care and Home Care business.
Porter’s Five Forces: Procter & Gamble’s Competitive Position
In examining Porter’s five forces at work at P&G, we find that three competitive forces are horizontal in nature and two are vertical.
The Growing Demand for Tea in the US
Though the per capita consumption of tea in the US is low compared to other countries, the growth in tea consumption in recent years has been impressive.
Procter & Gamble’s Downy: World’s Fastest-Growing Brand
According to Kantar World Panel’s Brand Footprint 2015 report, Procter & Gamble’s (PG) fabric softener Downy was the fastest-growing brand in 2014.