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The Procter & Gamble Company (PG)

  • Apr. 17, 2014, 8:25 AM
    • In a 28-2 vote, the Vermont Senate passes a bill that will require packaged food makers to label their products that contain genetically modified organisms ((GMOs)). If the State House of Representatives approves the Senates' changes to the version it passed before sending it the upper chamber, then the law will take effect July 1, 2016.
    • Vermont will be the first U.S. state to institute such mandatory labeling.
    • Predictably, food manufacturers oppose the bill saying GMOs are ubiquitous on grocery store shelves. The most popular GMO crops are corn, soybeans and canola which are found in almost every kind of packaged food. They say that GMOs are safe and the law, if enacted, will add unnecessary costs and complications for farmers and the food industry.
    • Consumer groups believe more safety testing needs to be done by independent researchers.
    • Vermont's bill would make it illegal to label a food product containing GMOs as "natural" or "all natural".
    • (MON) (PG)
    • ETFs: PBJ
  • Apr. 16, 2014, 8:18 AM
    • A strong month for retail sales in China could bode well for U.S. companies relying on a vibrant consumer in the region. March's pace of 12.2% growth beat estimates.
    • During Q1, China's retail sales increased 12% Y/Y to 6.21T yuan ($1.01T).
    • A cross-section of some firms looking at China for growth includes Yum Brands (YUM), Whirlpool (WHR), Avon Products (AVP), Ford (F), Ralph Lauren (RL), and Procter & Gamble (PG).
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  • Apr. 9, 2014, 3:21 PM
    • Procter & Gamble (PG) is making the right move to shed its under-performing pet food business, says Citigroup.
    • Though the financial impact of the divestiture might be minor, the pet food operations were a drag on management's time. Citi also notes the move backs up CO A.G. Lafley's claim that 10% of P&G's assets could be chopped off to help improve the firm's overall profitability.
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  • Apr. 9, 2014, 10:39 AM
    • The deal terms for the sale of the three Procter & Gamble (PG +0.8%) pet food brands also gives Mars the option to acquire the business in several European Union nations. If Mars doesn't buy out those assets, P&G says it will look for another buyer.
    • The divestiture of the pet care business isn't expected to have a material impact on earnings.
    • The companies expect the transaction to close in the second half of the year after regulators sign off on it.
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  • Apr. 9, 2014, 9:16 AM
    • Mars plans to buy a series of Procter & Gamble (PG) pet food brands for $2.9B.
    • P&G unloads the Iams, Eukenaba, and Natura brands as part of the deal.
    • As a result of the sale, P&G will begin reporting results for its global pet care business as a discontinued operation starting in Q2.
    • The pile of cash from the deal will go to general corporate purposes, says P&G for now.
    • PG +0.5% premarket
  • Apr. 8, 2014, 6:46 PM
    • Utility stocks are the only group that's been rising regularly in the recent selloff, but another group of stocks that might start to interest buyers: Warren Buffett's top dividend yielding stocks from the Berkshire Hathaway (BRK.A, BRK.B) portfolio.
    • Coca-Cola (KO) is a long-time Berkshire holding, fitting with Buffett's buy and hold forever strategy; the dividend yields 3.15%.
    • Procter & Gamble (PG) is a long-time holding; it just announced another 7% dividend hike and yields 3.18%.
    • Wells Fargo (WFC) is Buffett’s favorite bank and is the largest position in the Berkshire portfolio; while it yields only ~2.4% now, it telegraphed a quarterly dividend raise to $0.35/share for a new yield of 2.87%.
    • Wal-Mart (WMT) has grown to a stake of nearly 50M shares, and it raised its quarterly payout to $0.48/share, generating a new yield of 2.45%.
    • Buffett owns ~40M shares of GM, where the dividend is relatively new but the drop in the stock price now has its yield just above 3.5%.
    • GE was added as a larger stake after Berkshire’s warrant conversions, but the position is still worth only ~$250M; the dividend yields ~3.4%.
    • Buffett still owns 11M shares of ConocoPhillips (COP; 3.94% yield) but has moved more cash into rival Exxon Mobil (XOM; 2.7% yield).
  • Apr. 7, 2014, 8:32 AM
    • Procter & Gamble (PG) declares $0.6436/share quarterly dividend, 7.0% increase from prior dividend of $0.6015.
    • Forward yield 3.23%
    • Payable May 15; for shareholders of record April 25; ex-div April 22.
  • Mar. 4, 2014, 2:31 PM
    • Procter & Gamble (PG +1.4%) is pushing innovation with its diaper development in order to protect its edge over Kimberly-Clark (KMB +1.4%) and other rivals.
    • Diapers account for 12% of P&G's revenue with close to 89% of those sales from outside the U.S.
    • The company thinks if it can build the perfect diaper with "zero leakage, ultimate dryness, ultimate comfort, with an underwear-like fit" that it can keep generic brands at bay and protect margins.
    • The baby-care division at P&G has racked up over 5K patents including the ones that are still pending.
  • Feb. 26, 2014, 6:51 AM
    • Target (TGT) has retaliated against Procter & Gamble (PG) over its decision to get cozy with Amazon, according to inside sources.
    • P&G decided last year to let Amazon set up space inside of its warehouses to help fulfill online orders.
    • Now, some P&G products have been de-emphasized at Target stores and given less-prominent placements.
  • Feb. 24, 2014, 10:34 AM
    • Procter & Gamble (PG +0.3%) wants to sell a personalized healthcare unit that caters to wealthy consumers.
    • MDVIP has a network that extends to 700 physicians in 42 states with a membership price of $1.5K per year.
    • Piper Jaffray is out shopping MDVIP to interested parties. Insiders say a P-E firm will be the most likely buyer.
  • Feb. 20, 2014, 4:33 AM
    • Novartis (NVS) and Bayer (BAYRY) are among the suitors that are exploring an acquisition of Merck's (MRK) consumer-healthcare business, Reuters reports, adding that the unit could be worth $10-12B.
    • Reckitt Benckiser (RBGPF) and Procter & Gamble (PG) are also among the companies to have held talks with Merck about a deal. However, GSK (GSK) is not interested.
    • Novartis and Merck have considered swapping the latter's consumer-healthcare operations for Novartis' animal-health and human vaccines businesses, although such a deal is looking unlikely.
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  • Feb. 18, 2014, 6:09 PM
    • Colgate-Palmolive (CL) warns it could book one-time losses of $180M-$200M, or $0.19-$0.21/share, during the current quarter tied to Venezuela's recent moves related to the exchange rate for foreign investments.
    • The warning comes a week after Procter & Gamble (PG) cut its FY 2014 profit guidance, citing the devaluation of Venezuela's bolivar.
    • CL also says it is unclear how a new Venezuelan law establishing a maximum 30% profit margin may affect its current pricing strategy in the region.
    • CL -0.4% AH.
  • Feb. 11, 2014, 4:24 PM
    • Citing forex volatility in Venezuela, Argentina, Turkey, and elsewhere, Procter & Gamble (PG) is lowering its FY14 (ends in June) revenue growth guidance range to 0%-2% from a prior 1%-2%, and its core EPS growth guidance range to 3%-5% from 5%-7%. (PR)
    • Excluding forex, P&G still expects 3%-4% organic revenue growth and 12%-14% core EPS growth in FY14.
    • P&G also says it expects to incur a $230M-$280M ($0.08-$0.10/share) charge due to the impact of Venezuelan government currency policy changes on the company's local balance sheet.
  • Feb. 11, 2014, 1:42 PM
    • Procter & Gamble (PG +1.3%) has opened its 20th Tide Dry Cleaner store with an outlet in Charlotte, North Carolina.
    • The Tide store concept has been rolled out slowly by the company with early returns positive.
    • P&G is using a franchise model in its dry cleaning store push.
  • Jan. 29, 2014, 10:01 AM
    • Consumer-facing multinationals with a focus on emerging markets are falling at a faster clip than market averages in early trading.
    • Decliners: Procter & Gamble (PG) -2%, Colgate-Palmolive (CL) -2.0%, Campbell Soup (CPB) -2.8%, Mondelez International (MDLZ) -2.2%, Unilver (UL) -2.1%, Avon Product (AVP) -2.6%, Coty (COTY) -2.2%, Kellogg (K) -2.3%, Avon Products (AVP) -2.6%
  • Jan. 24, 2014, 1:41 PM
    • Execs with Procter & Gamble (PG +2.7%) highlighted the consistent demand the multinational saw across global markets and notes late-quarter strength sets up FQ3 for solid organic sales growth.
    • An important note is that profits are growing at a faster rate than sales on a constant currency basis in developing markets. Russia, China, and Brazil should see even more margin accretion as innovation and local manufacturing contributes.
    • The company expects to make share repurchases of between $4B and $5B this year.
    • Good news on the diaper front: P&G's market share for diapers rose 150 bps over the last year in the U.S.
    • Earnings call transcript
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Company Description
Procter & Gamble Co provides branded consumer packaged goods. It markets its products in about 180 countries through mass merchandisers, grocery stores, membership club stores, drug stores, department stores among others.