Erin Lash: Proctor & Gamble shares were again punished after third-quarter results that included languishing sales. More specifically, organic sales ticked up just 1% in the quarter, driven entirely by higher volumes and more favorable mix, which was offset by lower prices.
The sales constraints were particularly concentrated in two of its segments, specifically grooming and baby care. However, we don't think the firm is standing still, but rather, is investing to correct these challenges. For instance, in grooming, which makes up about 10% of its consolidated total, the firm has been recalibrating pricing, investing in new products, and has launched its own subscription-based sales model.
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Erin Lash does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.