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The Procter & Gamble Company
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2019 Vault Rankings

At a Glance

Uppers

Flexible work schedules.

Lots of training opportunities.

Downers

Long hours for many people.

The Bottom Line

Procter & Gamble Company offers hard-working employees a lot of opportunities to improve their skills and climb the ladder.

About The Procter & Gamble Company

The Procter & Gamble Company (P&G) boasts billion-dollar brands for home and health. The world's largest maker of consumer packaged goods divides its business into five global segments that comprise its vast portfolio of hair, skin and personal, oral, family, feminine, and baby care product lines. Its dozens of brands include Ace, Bounce, Crest, Gillette, Pampers, Pepto Bismol, Puffs, Old Spice, Swiffer, and Tide. Fabric and home care is P&G's leading product category, accounting for about a third of sales. The company sells products in 180-plus countries, although the US is its largest market.

Operations

P&G operates its business globally through five segments: Fabric & Home Care (about a third of sales); Baby, Feminine & Family Care (some 25%); Beauty (nearly 20%); Health Care (more than 10%); and Grooming (about 10%). Taken together, the segments include everything from laundry additives and air fresheners to diapers and digestive aids as well as deodorant, toothpaste, shampoo, and razors. 

The company's market-leading brands include Tide, Ariel, and Downy in Fabric & Home Care; Pampers, Always, and Bounty in Baby, Feminine & Family Care; Olay, Pantene, and Head & Shoulders in Beauty; Vicks, Metamucil, and Pepto Bismol in Health Care; and Gillette, Fusion, and Venus in Grooming.

Geographic Reach

P&G has operations in some 70 countries worldwide and markets its products in more than 180. It generates about 45% of its revenue from business in the US and Canada. P&G's remaining revenue comes from Europe (nearly 25%) and the Asia-Pacific region and Greater China (some 20% together), as well as India, the Middle East, and Africa (IMEA) and Latin America.

To support its operations, the Cincinnati, Ohio-based company owns some two dozen manufacturing sites across nearly 20 US states. Additionally, it owns about 85 production facilities in 35-plus other countries.

P&G's primary regional general offices are located in Switzerland, Panama, Singapore, and China while its primary regional shared service centers are in Costa Rica, the UK, and the Philippines.

Sales and Marketing

P&G sells its products worldwide through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, and other retail channels. Sales to Walmart and its affiliates account for about 15% of total revenue.

With its vast stable of brands, P&G invests heavily in advertising. In mid-2017, however, it announced plans to cut a whopping $2 billion in marketing spending over five years as part of a broader cost-cutting program. The company reported advertising expenses of $6.8 billion in fiscal 2019, compared to $7.1 billion in each of the prior two years.

Financial Performance

After several years of falling revenue, P&G has seen growth for the past two fiscal years. Overall, however, sales are down 4% since fiscal 2015 (ended June). Net income has been on a somewhat opposite trajectory, hitting a peak in fiscal 2017 before falling significantly over the past two years.

In fiscal 2019 the company reported revenue of $67.7 billion, up 1% from the prior year. Growth was driven by single-digit increases in Beauty, Health Care, and Fabric & Home Care, partially offset by single-digit declines in Baby, Feminine & Family Care and Grooming.

Net income fell 60% to $3.9 billion that year (on top of a decline of 37% in fiscal 2018). P&G recorded an impairment charge of $8.3 billion in fiscal 2019 related to its shave care reporting unit.

Cash at the end of fiscal 2019 was $4.2 billion, an increase of $1.7 billion from the prior year. Cash from operations contributed $15.2 billion to the coffers, while investing activities used $3.5 billion, mainly for capital expenditures and acquisitions. Financing activities used another $10 billion for dividends to stockholders and stock repurchase. 

Strategy

With a portfolio of some of the world's most popular brands in various product categories, P&G relies on expanding and innovating within those brands to drive growth. Recent examples include upgraded Ariel and Tide PODS, Pampers Pure Protection Diapers, and the Oral-B GENIUS X toothbrush.

Amid the product expansion and innovation, the company is focused on operational optimization and cost-cutting. It is working on the transformation of its supply chain, particularly focusing on multi-category manufacturing sites such as a new, state-of-the-art plant that opened in West Virginia in 2019. P&G is also in the middle of its second five-year productivity program that it estimates will deliver some $10 billion in savings. The initiative includes savings in ad agency fees and other media spend as well as improvements in accounting measures such as accounts receivable days outstanding and inventory days on hand. 

Underlying both the product innovation and optimization/cost-cutting efforts is a greater focus on digitization and data analytics, giving P&G the information it needs to make smarter investment and product decisions.

Mergers and Acquisitions

In one of its biggest acquisitions in years, P&G in 2019 bought the consumer health unit of Merck KGaA for $3.7 billion. The purchase adds vitamins and supplements including the Seven Seas brand and expands the company's operations in Latin America and Asia. As part of the deal, P&G purchased a majority stake in Merck's Indian consumer health operations.

Company Background

Candle maker William Procter and soap maker James Gamble merged their small Cincinnati businesses in 1837, creating The Procter & Gamble Company (P&G). It incorporated in 1890 and went public on the New York Stock Exchange the following year.

 

The Procter & Gamble Company

1 PROCTER & GAMBLE PLZ
Cincinnati, OH 45202-3393
Phone: 1 (513) 983-1100

Stats

Employer Type: Publicly Owned
Stock Symbol: PG
Stock Exchange: , NYSE
Vice Chairman and CFO: Jon R. Moeller
Group President, Global Grooming: Charles E. Pierce
Chairman, President, and CEO: David S. Taylor
Employees (This Location): 277
Employees (All Locations): 97,000

Major Office Locations

Cincinnati, OH

Other Locations

Birmingham, AL
Vestavia, AL
Fayetteville, AR
Phoenix, AZ
Scottsdale, AZ
Anaheim, CA
Beverly Hills, CA
Canoga Park, CA
Ceres, CA
City Of Industry, CA
Costa Mesa, CA
Irvine, CA
Los Angeles, CA
Oxnard, CA
Palm Desert, CA
Palo Alto, CA
Pleasanton, CA
Rancho Cucamonga, CA
Roseville, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
San Ramon, CA
Venice, CA
Bethel, CT
Danbury, CT
Farmington, CT
Washington, DC
Dover, DE
Boca Raton, FL
Jacksonville, FL
Miami, FL
Orlando, FL
Palm Beach Gardens, FL
Sunrise, FL
Tampa, FL
Albany, GA
Atlanta, GA
Augusta, GA
Lagrange, GA
Sharpsburg, GA
Des Moines, IA
Iowa City, IA
West Branch, IA
Chicago, IL
Lombard, IL
Marengo, IL
North Chicago, IL
Oak Brook, IL
Rosemont, IL
Kansas City, KS
Lexington, KY
Baton Rouge, LA
Pineville, LA
Andover, MA
Ayer, MA
Boston, MA
Newton, MA
Belcamp, MD
Bethesda, MD
Cockeysville, MD
Auburn, ME
Troy, MI
Eden Prairie, MN
Minneapolis, MN
Hematite, MO
Jackson, MO
Kansas City, MO
Saint Louis, MO
Browns Summit, NC
Charlotte, NC
Greensboro, NC
Henderson, NC
Aurora, NE
Avenel, NJ
Freehold, NJ
Paramus, NJ
East Greenbush, NY
New York, NY
White Plains, NY
Blue Ash, OH
Cincinnati, OH
Grove City, OH
Inwood, OH
Lima, OH
Mason, OH
Oregonia, OH
Union, OH
West Chester, OH
Edmond, OK
Norman, OK
King Of Prussia, PA
Mehoopany, PA
Pittsburgh, PA
Tunkhannock, PA
Charleston, SC
Nashville, TN
Austin, TX
Dallas, TX
Frisco, TX
San Antonio, TX
The Woodlands, TX
Bear River City, UT
Farmington, UT
Bellevue, WA
Issaquah, WA
Seattle, WA
Tacoma, WA
Campbellsport, WI
Green Bay, WI
Wauwatosa, WI
Belleville, Canada
Brantford, Canada
Brockville, Canada
Calgary, Canada
Etobicoke, Canada
Montréal, Canada
North York, Canada
Saint-Laurent, Canada
Sorel-Tracy, Canada
Thornhill, Canada
Aspropyrgos, Greece
Apaseo El Grande, Mexico
Ciudad De Mexico, Mexico
Naucalpan, Mexico
Tepeji Del Río, Mexico
Oslo, Norway
Panama City, Panama
Bruxelles, Belgium
Espoo, Finland
Groß-Gerau, Germany
Newbridge, Ireland
Singapore, Singapore
Taguig, Philippines
Petit-Lancy, Switzerland