Procter & Gamble (NYSE: PG) is a multinational consumer goods company that was founded in 1837. The company has a market capitalization of $247 billion, as of Feb. 28, 2019, with total revenue of $66.8 billion for its fiscal year 2018, a slight increase from FY 2017 when it brought in $65 in sales. The company is headquartered in Cincinnati, Ohio, and employs over 95,000 workers worldwide.
The company has paid a dividend to stock holders for 128 consecutive years, increasing it in each of the past 62 years.
The company has five business segments organized around its product lines: baby, feminine, family care; beauty; fabric and home care; grooming; and, health care. It is known for many popular household name brands including (among others):
- Always menstrual hygiene products
- Ariel laundry detergent
- The Art of Shaving
- Bounty paper towels, sold in the United States and Canada
- Charmin bathroom tissue and moist towelettes
- Crest toothpaste
- Dawn dishwashing
- Downy fabric softener and dryer sheets
- Febreze odor eliminator
- Gain laundry detergents, liquid fabric softener, dryer sheets, and dishwashing liquid
- Gillette razors, shaving soap, shaving cream, body wash, shampoo, deodorant and antiperspirant
- Head & Shoulders shampoo
- Olay personal and beauty products
- Oral-B inter-dental products, such as Oral-B Glide
- Pampers & Pampers Kandoo disposable diapers and moist towelettes.
- Pantene haircare products
- SK-II beauty products
- Tide laundry detergents and products
- Vicks cough and cold products
Who Are P&G's Main Competitors?
In beauty care products, Avon is a major competitor to Procter & Gamble as are Colgate-Palmolive (NYSE: CL), Estee Lauder (NYSE: EL), Revlon (NYSE: REV), Coty (NASDAQ: COTY), Elizabeth Arden (NASDAQ: RDEN), Inter Parfums Inc (NASDAQ: IPAR), and Unilever. This segment accounted for 19% of Procter & Gamble's net sales, according to the company's 2018 annual report.
In the grooming segment, Procter & Gamble's Gillette brand is the dominant market player. Bic is a major competitor with a large international presence. Some recent startups in the shaving space, like Dollar Shave Club (now owned by Unilever), Harry's, and Billie are also providing competition, and have also resulted in several patent-related lawsuits levied by P&G. This segment accounted for 10% of Procter & Gamble's net sales.
In the health care segment, major competitors include CCA Industries, Colgate-Palmolive, Church and Dwight Co. (NYSE: CHD), Ecolab (NYSE: ECL), Stepan Company (NYSE: SCL), and United Guardian (NYSE: UG). This segment accounted for 12% of net sales.
In the fabric care and home care segment, major competitors include Colgate-Palmolive, Unilever (NYSE: UL), and Church and Dwight Co. Fabric care and home care sales represented about 32% of 2018 net sales.
In the baby, feminine, and family care segment, major competitors include Colgate-Palmolive, Unilever, and Church and Dwight Co. The segment accounted for 27% of Procter & Gamble's net sales.
Global Markets and Competition
Procter & Gamble also competes with countless smaller companies in the international segments in which it reports revenue.
P&G gets nearly 45% of its revenue from North America and some 24% from Europe. Nearly 65% of its total revenue is from developed markets. In contrast, rival Unilever reports almost 58% of its income coming from emerging markets, and 43% coming from developed markets. That is P&G's most significant problem: It is concentrated in the slow-growth markets.