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Procter & Gamble Co PG

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Morningstar’s Analysis

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While Procter & Gamble's Top Line Ticks Up in Q3, Inflating Cost Pressures Could Curb Its Trajectory

Erin Lash, CFA Sector Director

Analyst Note

| Erin Lash, CFA |

Despite the hype around sales the past few quarters, much consternation has more recently centered on how this growth would hold up as consumer product manufacturers begin to lap the extreme consumer stock-ups a year ago (which resulted in double-digit growth in a number of categories throughout the grocery store). Against this backdrop, we view wide-moat Procter & Gamble’s 4% organic sales marks as impressive (particularly when juxtaposed to the 6% uptick last year), which we attribute to strategic actions taken long before COVID-19 took hold (streamlining its brand mix and taking a more holistic approach to brand investing).

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Company Profile

Business Description

Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, generating more than $70 billion in annual sales. It operates with a lineup of leading brands, including 21 that generate more than $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. P&G sold its last remaining food brand, Pringles, to Kellogg in calendar 2012. Sales outside its home turf represent around 55% of the firm's consolidated total, with around one third coming from emerging markets.

Contact
One Procter and Gamble Plaza
Cincinnati, OH, 45202
T +1 513 983-1100
Sector Consumer Defensive
Industry Household & Personal Products
Most Recent Earnings Mar 31, 2021
Fiscal Year End Jun 30, 2021
Stock Type Classic Growth
Employees 99,000

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