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Procter and Gamble research report
Finance & Accounting
Pages 5 (1255 words)
Procter and Gamble Company is a manufacturing company involved in production and distribution of consumer products. The company has since 2001 doubled its sales as a result of developing new market by acquiring and integrating Wella and Gillette and selling its coffee, pharmaceutical and food enterprises…
The company management has responded to investors worry on costly structure and slow top line growth rate by through a cost saving plan worth $10 billion. This is expected to reduce the headcount that will enable the company achieve its earning per share growth rate forecast to 8% and 10% in free up funds that can be reinvested. Third quarter results shows that the organic sales have increased by 3% from its previous quarter but the operating profit decreased by 11%. The management of the company lowered the earning per share to $3.82-$3.88 from the previous earning of $3.93-$4.08 as a result of the lowering operating profit. This means that Procter and Gambler 2012 fiscal year earning per share is expected to remain flat as compared to previous fiscal EPS of $3.87. The company gross margin has decreased by 150 bases to 49% on higher inputs and negative sales while it has increased by 32.9% on restructuring charges and overhead costs. The firm is supposed to restructure if it expects to gain full potential in its future growth. This is to be achieved by mean of calibrating its pricing by either adopting initial price or by promotion. Also, the company should invest more in the developing markets where it remains under penetrating where all other firms in packaged goods are moving.
Procter & Gamble Company has famous line up of packaged brands which are sold and distributed through three global business units in over 180 countries world wide. ...
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