Procter & Gamble Co
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$543.00 | Zstf | Ldggllwy |
Procter & Gamble Wisely Sticks to Its Knitting in the Face of Macro and Inflationary Headwinds
Business Strategy and Outlook
It wasn’t long ago that Procter & Gamble was dogged by lackluster sales growth.However, after posting its 17th consecutive quarter of at least mid-single-digit organic revenue growth, these concerns are a distant memory. While we recognize the firm has been a beneficiary of the pandemic (with a mix that caters to consumers' penchant for cleaning and disinfecting fare), we attribute these marks to the strategic course P&G embarked on just more than eight years ago (rightsizing its category and geographic reach by shedding around 100 brands to ensure resources were being effectively allocated to the highest-return opportunities, while maintaining a stringent focus on costs). As a part of this playbook, P&G also adopted a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers for its retail partners and end consumers) that we think should support its wide moat long term.