P&G is a 168 year-old multinational company that markets almost 300 brands; 16 of which are billion-dollar brands that make up more than half of the companies annual sales. Chances are that any household or personal care product you buy comes from this company. Some of their most recognized brands include Tide, Crest, Pantene, and Pampers, to name a few. Procter & Gamble sales are increasing everyday with more products reaching the billion dollar mark each year. Their annual sales amount to $51.4 billion and their net profits are $6.5 billion. Since September 2003 they have acquired two major companies – Wella and Gillette – that have significantly added to P&G’s sales and future outlook.
P&G’s main focus is on brand building which is winning over the customer during their “first moment of truth.” They are constantly promoting their brands and upgrading them to be the best quality product they can provide for their customers.
Financially, P&G is increasing its position year after year. Although their return on assets and current ratio have incurred minor declines of 0.5% and 0.46% respectively, this has been the result of recent acquisitions and informed decisions made on the basis of their projected cash flow and current earnings. Return on equity has increased by 5.5% and their net profit margin is 12.6%. More importantly, the company shows a strong commitment to its shareholders, having distributed increasing dividends in each of the last 45 years its stock has been traded. Last year alone, the company issued more than $2.54 billion to its shareholders of record.
With excellent shareholder relations and increasing returns, expansion into developin ...