Interested in investing in Procter & Gramble Group shares? Here’s everything you need to know about the company, its activities and main competitors.
Procter & Gamble is an American multinational company specializing in the manufacturing and marketing of consumer products. In 2019, it employed nearly 100,000 people and had a total market capitalization of over $306,700 million. The company continues to grow and its shares are among some of the most traded on the market.
The following guide provides information related to shares, turnover, competitors and partners alongside factors that can influence the price of the asset.
Based in Cincinnati, Ohio, the American company Procter & Gamble was founded in 1937 by William Procter and James Gamble. It manufactures and sells consumer products that we use every day, including shavers, small appliances, cosmetics, soaps, shower gel, toothpaste, diapers, sanitary napkins, hair and body products, perfumes, fabric softeners, deodorants, cleaning and laundry products and paper towels.
Procter & Gamble owns over 20 recognized brands, including Always and Tampax, Ariel, Charmin, Braun and Fusion, Crest, Downy, Lenor, Febreze, Fluocaril, Gain, Gama, Gilette, Olay, Old Spice, Head & Shoulders, Oral-B, Pampers, Pantene, Vidal Sassoon, Tide, Bonux, Mr Clean, Swiffer, Ace, Bounty, Max Factor, Covergirl, Lacoste, Hugo Boss and Escada.
The company’s major shareholders include The Vanguard Group with 8.4%, BlackRock Fund Advisors with 6.71%, SSgA Funds Management, Inc. with 4.43%, Wellington Management with 2.07%, Geode Capital Management with 1.62%, Northern Trust Investments, with 1.28%, Norges Bank Investment Management 1.07%, Fidelity Management & Research with 0.83%, Pentwater Capital Management with 0.78%, and State Farm Investment Management with 0.72% of the shares.
This stock is listed on the NYSE Main Market in the United States. For this year, P&G reported a total market capitalization of $317.41 billion.
The company’s turnover is broken down as follows:
Regarding the geographical distribution of the group's revenues, 39% of Procter & Gamble's revenues are currently generated in the United States, 19% in Western Europe, 18% in Central Europe, 14% in the Middle East and Africa and 10% in Latin America.
Following the increase in demand for cleaning and laundry products during the coronavirus pandemic, the company saw its sales rise by 9% in 2020.
In the second quarter of its fiscal year 2020-2021, it reported earnings of $3.85 billion, or $1.47 per share, up from $3.72 billion, or $1.41 per share, in the previous year.
At the end of the quarter, the group exceeded market expectations with revenues for the period of $19.75 billion, as opposed to an expected $19.2 billion. It reported net income of $4.28 billion, or $1.64 per share, rather than the expected $1.51.
For 2021, Procter & Gamble expects earnings growth of 8-10% and sales growth of between 5 and 6%, with comparable organic growth. The group expects to return about $18 billion in cash to its shareholders. The company plans to buy back more shares during the year, with $7 billion to $9 billion spent on share repurchases.
There are many factors influencing the price of Procter & Gamble. Potential investors need to keep an eye on the evolution of certain segments and markets in which the group is increasingly present, such as cosmetics for men.
At the same time, P&G is striving to improve productivity and supplier relationships with its suppliers, while acquiring new brands and companies. This could help it improve its market position. However, the group's competitors Colgate Palmolive, Henkel, L'Oréal and Johnson & Johnson must be taken into consideration. Its partners include WalMart and EDF.
Finally, it should be noted that Procter & Gamble has paid dividends for 130 consecutive years, which have increased 64 years in a row, to demonstrate its commitment to returning value to its shareholders. The company's board of directors has stated that any shareholder of record since January 22, 2021 will receive a quarterly dividend of $0.7907 per share.
