A Progressive Digital Media business

COMPANY PROFILE

The Procter & Gamble

Co

REFERENCE CODE: C895EAE6-25E0-4D36-B30D-69500B939DC1

PUBLICATION DATE: 21 Jun 2024
[Link]
COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED
The Procter & Gamble Co
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3

Key Facts ......................................................................................................................... 3
SWOT Analysis ...............................................................................................................4

The Procter & Gamble Co Page 2

© MarketLine
The Procter & Gamble Co
Company Overview

Company Overview

COMPANY OVERVIEW
The Procter & Gamble Co (P&G) is a manufacturer and marketer of fast-moving consumer goods. The
company’s product portfolio comprises conditioners, shampoos, blades and razors, toothbrushes,
toothpastes, dish-washing liquids, detergents, surface cleaners and air fresheners. It also offers baby
wipes, diapers and pants, paper towels, tissues, and toilet paper. P&G markets its products under Head &
Shoulders, Tide, Ariel, Olay, Pantene, Pampers, Gillette, Braun, and Fusion brand names. The company
sells its products through grocery stores, membership club stores, specialty beauty stores, high-frequency
stores, online channels, pharmacies, drug stores and department stores. It has business presence across
Asia-Pacific, Europe, the Middle East, Africa, and the Americas. P&G is headquartered in Cincinnati,
Ohio, the US.

The company reported revenues of (US Dollars) US$82,006 million for the fiscal year ended June 2023
(FY2023), an increase of 2.3% over FY2022. In FY2023, the company’s operating margin was 22.1%,
compared to an operating margin of 22.2% in FY2022. In FY2023, the company recorded a net margin of
17.9%, compared to a net margin of 18.4% in FY2022.
The company reported revenues of US$20,195 million for the third quarter ended March 2024, a
decrease of 5.8% over the previous quarter.
Key Facts

KEY FACTS

Head Office The Procter & Gamble Co

1 Procter and Gamble Plaza
Cincinnati
Ohio
Cincinnati
Ohio
USA
Phone 1 513 9831100
Fax
Web Address [Link]
Revenue / turnover (USD Mn) 82,006.0
Financial Year End June
Employees 107,000
New York Stock Exchange Ticker PG

The Procter & Gamble Co Page 3

© MarketLine
The Procter & Gamble Co
SWOT Analysis

SWOT Analysis

SWOT ANALYSIS
The Procter & Gamble Co (P&G) offers beauty and health care products. Large scale of operations,
innovation capabilities, and market leading position are the company’s major strengths, even as
dependence on few customers, and low liquidity remains major causes for concern. The global skin care
market, global feminine hygiene products market, and launch of new products are likely to offer growth
opportunities to the company. However, foreign exchange risks, intense competition, and strict
regulations could affect its business opportunities.

Strength Weakness

Large Scale of Operations Dependence on Few Customers

Innovation Capabilities Low Liquidity
Market Position
Opportunity Threat

Launch of New Products Foreign Exchange Risk

Global Skin Care Market Intense Competition
Global Feminine Hygiene Products Market Strict Regulations

Strength

Large Scale of Operations

P&G has large scale operations, both in terms of revenues and geographic presence. A large scale of
operations helps it in expanding its customer base and its competitive advantage. As of June 2023, the
company managed and operated on-the-ground activities in 70 countries worldwide and sold its products
in approximately 180 countries and territories through various mass merchandisers, grocery stores,
membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty
beauty stores, online channels, high-frequency stores, and pharmacies. As one of the world's largest
consumer packaged goods (CPG) companies, P&G has scale advantages across its brands, businesses,
and operations. This allows the company to optimize its spending and streamline resources to better
serve consumers and continuously improve its efficiency and productivity. As of June 2023, the company
produced products in the US through its 24 manufacturing facilities spread across 18 states and also
manages 80 manufacturing plants in 34 other countries, of which 37 are for fabric & home care products,
37 are for baby, feminine & family care products; 23 are for beauty products, 20 are for Health care
products; and 17 are for grooming products. The company owns or leases principal regional general
offices in Switzerland, Singapore, Panama, China and the UAE.

Innovation Capabilities

The company’s strong research and development (R&D) capabilities enables it to produce innovative

The Procter & Gamble Co Page 4

© MarketLine
The Procter & Gamble Co
SWOT Analysis

products that meet customers’ expectations. P&G focuses heavily on innovation and continued marketing
investments to establish a significant competitive advantage. Innovation based strategies enables the
company to stay abreast of the changes in the industry and provide it with a ‘first mover’ advantage by
launching products ahead of competitors and delivering advanced products and services to its customers.
It also aims to develop new and innovative products and enhance existing product lines by identifying
eco-friendly products based on changing market trends and consumer preferences. P&G’s R&D arm
focuses on developing products and packaging with superior quality utilizing various customer insights.
The company oversees its R&D operations through a network of R&D centers that employ 7,600
scientists and researchers worldwide. These researchers work in collaboration with experts across
multiple disciplines, such as product design, development, supply, manufacturing, technology
development, and marketing, to identify opportunities for innovation and develop products that align with
consumer expectations, ultimately building trust among consumers. The company also contains patents
and trademarks across the globe. As of June 2023, the company had over 37,000 active patents. In
FY2023, P&G incurred expenses of US$2,000 million, which as a percentage of the company’s revenue,
stood at 2.5%.

Market Position

A market leading position helps the company in attracting and retaining a wide customer base and
developing a competitive edge over peers. The company is a market leader in many of its product lines
and has a strong competitive position and reputation. In Beauty Segment, the company holds 20% global
market share with its Pantene and Head & Shoulders brands. In Skin and Personal Care segment, Olay
brand, which is one of the top facial skin care brands in the world with approximately 5% global market
share. P&G holds 60% of global market share of global blades and razors market behind Gillette and
Venus brands. It also holds over 50% market share in female epilators market and 25% of the male
electric shavers market. In healthcare market, it holds nearly 20% global market share behind its Crest
and Oral-B brands. P&G also holds number one and number two position with 35% market share in fabric
care market behind its Ariel, Tide, and Downy brands. It also approximately 25% of global home care
market share behind its Cascade, Febreze, Dawn and Swiffer brands. The company holds nearly 20%
global market share in baby care market and has number one or number two market share position is key
markets behind Pampers, the largest brand. P&G is market leader in feminine care category with 20%
global market share behind Always and Tampax brands and it holds over 40% market share for Bounty
and above 25% market share for Charmin in the US.

Weakness

Dependence on Few Customers

P&G relies on a small number of customers for its merchandise. It manufactures and supplies its products
to customers in the consumer products market. Since the purchasing power of customers increased, it
could seriously harm the company’s business and financial conditions if there are price fluctuations and
other quality issues. In FY2023, the company generated a significant amount of revenue and profit from a
limited number of large customers. This will affect the revenue of the company if it loses one or more of
these customers. In FY2023, the ten largest customers of the company accounted for approximately 40%
and 39% in 2023 and 2022, respectively, wherein Walmart Inc and its affiliates accounted for 15% of the

The Procter & Gamble Co Page 5

© MarketLine
The Procter & Gamble Co
SWOT Analysis

company’s total sales in FY2023 and FY2022.

Low Liquidity

Low liquidity is an indication of the decreasing ease in funding the company’s day to day operations,
which limits its ability to capture growth opportunities in the market. P&G’s current ratio was 0.6 at the end
of FY2023 as compared to 0.7 at the end of FY2022. The company’s current ratio was lower than that of
its major competitors, The Hain Celestial Group Inc and Edgewell Personal Care Co, which reported
current ratio of 2.6 and 1.8, respectively, during the same period. The decrease in current ratio could be
due to 8.1% increase in its current liabilities, which grew from US$33,081 million in FY2022 to US$35,756
million in FY2023 due to increase in accounts payable and accrued expenses.

Opportunity

Launch of New Products

The company focuses on the expansion of its product portfolio through the launch of new products. To
this end, the company has taken many research initiatives to launch innovative products. In February
2024, Old Spice introduced a new total body deodorant collection. The Total Body Deodorant line from
Old Spice features aluminum-free formulas. It is offered in three refreshing options: Total Body deodorant
spray, Total Body deodorant cream, and Total Body deodorant stick. In November 2023, Secret
Deodorant launched Secret U, an educational platform. Secret U by partnering with Boss Women Media,
Open Path Psychotherapy Collective, and renowned female financial experts aim to provide accessible
financial resources and alleviate the burden of financial stress. In August 2023, the company introduced
the new Mood Collection, a design scent under Febreze brand. The new Mood collection featuring three
expertly blended scents designed to create the perfect ambiance for every room in home. In June 2023,
the company's Charlie Banana brand announced the introduction of 13 new diaper designs. The new
collection comprises 13 fresh prints, ranging from vibrant, cheerful colors to serene, understated shades.
With these new designs, Charlie Banana now boasts a selection of 32 trendy prints and lovely solid colors
to cater to babies of all personalities. In June 2023, the company launched Pampers Swaddlers in size 8
for babies. Pampers Swaddlers are designed with baby’s skin health in mind and features up to 100%
leakproof protection and Dual Leak-Guard Barriers to help protect leaks, keeping baby dry and
comfortable. In the same month, the company launched new collection of reusable diapering products.
The new reusable cloth and swim diapers suitable for babies' bottoms while helping families reduce their
household waste. In May 2023, the company introduced BARE – H&S’s nine ingredient anti-dandruff
shampoo. Infused with nine ingredients, the new anti-dandruff formula is free from sulfates, silicones and
dyes. It is designed to work across all hair types and deliver the effective dandruff protection. In March
2023, the company announced the release of its new On-Body Mosquito + Tick Repellents under Zevo
brand name. It provides non-sticky, odorless, and complete protection against mosquitos and ticks for up
to eight hours. In January 2023, the company’s Pampers brand joined with a global branded
entertainment leader Hasbro, to launch easy ups training underwear with new Peppa Pig prints. The new
product could help parents save money and live better through product selection and low prices.

Global Skin Care Market

The Procter & Gamble Co Page 6

© MarketLine
The Procter & Gamble Co
SWOT Analysis

The company stands to benefit from the growing global skincare market. Rising awareness on benefits of
skincare products with natural ingredients is a major growing factor in demand for organic skincare
products. Furthermore, the growing demand for anti-aging products such as face cream, anti-wrinkle
cream is driving the market. According to in-house research report released, the global skin care market
was US$140,777.5 million in 2022. Category wise, facial care is the largest segment, accounting for 82%
of the market value in 2022, followed by body care (12.1%), hand care (2.6%), depilatories (1.8%) and
make-up remover (1.6%) in 2022. Asia-Pacific accounted for 57.8% of the global skincare market in 2022,
followed by Europe (20.1%), the US (13.5%), Middle East (1.5%), and rest of the world (7%). The global
skin care market is forecast to reach a value of US$174,034.4 million in 2027 at a CAGR of 4% during
2022-27. In terms of volume, the global skin care market value is forecast to reach 20,223.5 million units
in 2027 at a CAGR of 1.5% during 2022-27 from 18,733.6 million units in 2022. P&G manufactures and
markets various skin care products including antiperspirants and deodorants, personal cleansing. It
markets these products under Pantene, Head & Shoulders, Olay, Rejoice, Old Spice, SK-II and
Safeguard brand names. In March 2023, Venus launched its first ever dermaplaning skincare regimen.
The new collection consists of a cleansing primer, dermaplaning razor, hydrating serum, and an electric
mini hair remover that are designed to work in for instantly glowing skin.

Global Feminine Hygiene Products Market

The company could benefit from growing feminine hygiene market as it offers feminine care products
including adult incontinence and other feminine care products. Rise in health consciousness and
awareness among various female users, increase in the number of working women, rapid urbanization,
rising disposable incomes and exemption from taxes on sanitary pads in certain countries are some of the
key factors impelling the growth of the market. Increased usage of biodegradable and 100% plastic free
materials for developing these products are expected to fuel market growth in the future. According to in-
house research, the global feminine hygiene market is forecast to grow at a CAGR of 4.8% during 2022-
27 to reach US$45,811.4 million by 2027 from US$36,208.9 million in 2022. In terms of volume, the
hygiene market is expected to reach to 14,197.8 million units by 2027 from 2,489.5 million units in 2022.
Categorize wise sanitary pads is the largest segment of the global feminine hygiene market accounting
for 65.2% of the market’s total value, followed by pantiliners and shields (12.3%), tampons (10.7%),
women’s disposable razors and blades (8.8%), internal cleansers and sprays (3%). Asia-Pacific accounts
for 53.9% of the global feminine hygiene market value, followed by Europe (21.1%), the US (16.7%), the
Middle East (1.5%), and Rest of the World (6.8%). P&G is a global market leader in the feminine care
category and held over 25% global market share, primarily in Always and Tampax brands. It undertook
several initiatives, which could gain advantages from growing global feminine hygiene market. In August
2023, Clearblue introduced a Menopause Stage Indicator. It would determine women’s menopause stage
by combining the results of five urine FSH tests, with cycle history and age.

Threat

Foreign Exchange Risk

The company operates in many parts of the world, and it is exposed to fluctuations in foreign exchange
rates. The company reports financials in US Dollar and as a result, its revenue is exposed to volatility of
the US Dollar against other functional currencies including the British Pound and Euro as it serves

The Procter & Gamble Co Page 7

© MarketLine
The Procter & Gamble Co
SWOT Analysis

customers across the world. The major elements exposed to exchange rate risks include the company’s
investments in overseas subsidiaries and affiliates and monetary assets and liabilities arising from
business transactions in foreign currencies. In FY2023, the company reported a loss of US$71 million
from foreign currency translation adjustments, compared to US$1,450 million in FY2022. To minimize
risks from currency fluctuations, the company could involve in foreign exchange hedging activities by
entering into foreign exchange forward contracts. However, there could be no assurance that such
hedging or measures would limit the impact of movements in exchange rates on the company’s results of
operations.

Intense Competition

The company operates in a highly competitive consumer industry. The factors that determine the level of
competition within the industry include service performance, price, and sales and distribution capabilities.
P&G primarily faces competition from Unilever and Colgate-Palmolive Co. The company competes in
developed and developing markets with Colgate-Palmolive, where they sell products such as deodorants,
soaps, and dishwashing liquids, and fabric conditioners. P&G competes with Unilever mainly on the basis
of price positioning. This might put pressure on the company's global market share. It also competes with
L'Oreal in the skin and hair care segment. P&G also faces competition from Avon Products and Revlon in
personal and other related products. Other competitors of P&G include Kimberly-Clark Corp, Johnson &
Johnson, Reckitt Benckiser Group Plc and Church & Dwight Co. Many of its competitors have a longer
operating history, greater brand recognition, established customer and supplier relationships, and greater
financial resources, which leads to the creation of innovative products and business expansion through
acquisitions. Some of its competitors took several initiatives, which could increase competition to the
company in the market. In June 2023, Beiersdorf AG launched a new radiant and beauty range product.
In March 2023, Colgate-Palmolive Co entered into a partnership with foodpanda to expand customers’
access to Colgate products in more than 400 cities across 11 markets within Asia Pacific.

Strict Regulations

P&G has a global presence with manufacturing operations in nearly 37 countries. The company
generates a significant portion of its revenues from international operations, which are subject to risks of
non-compliance with various laws and regulations involving intellectual property, product liability, antitrust,
marketing, privacy, environmental, employment, and anti-bribery or anti-corruption (such as the US
Foreign Corrupt Practices Act), among others. The company must abide by various regulations and
specifications pertaining to its products in domestic and international markets. P&G’s operations such as
product development, packaging, research, transportation, storage, export and import, distribution,
ingredients advertising, and sales are subjected to rules and regulations of various government agencies
in the US such as the US Food and Drug Administration, the Consumer Product Safety Commission, the
Environmental Protection Agency, the Federal Trade Commission, and the US Foreign Corrupt Practices
Act. Any changes in regulations could affect the company’s operations. Non-compliance with rules and
regulations could impose fines and penalties to the company, affecting its operational costs.

The Procter & Gamble Co Page 8

© MarketLine
Copyright of Procter & Gamble Co Analysis SWOT Analysis is the property of MarketLine, a
Progressive Digital Media business and its content may not be copied or emailed to multiple
sites or posted to a listserv without the copyright holder's express written permission.
However, users may print, download, or email articles for individual use.