P&G - Committed Efforts Underway To Ensure Sustained Growth: Motilal Oswal

The uncertain pace of sales and earnings recovery and expensive valuations lead us to maintain our 'Neutral' rating.

<div class="paragraphs"><p>P&amp;G range of products. (Source: Company's LinkedIn profile)</p></div>
P&G range of products. (Source: Company's LinkedIn profile)

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Motilal Oswal Report

Procter and Gamble Hygiene and Health Care Ltd. organised an analyst meet to share its performance over the years and here are the takeaways:

  • P&G has achieved superior growth over the years through a strong portfolio of products, including superior packaging, brand communication, and retail execution. Its strategic integration of productivity measures led to substantial savings of approximately Rs 1.05 billion in FY23.

  • It holds over 50% market share in both feminine care and health care categories and 90% of the company products are natural and Ayurvedic.

  • The market in which the company deals is still underpenetrated, offering ample opportunities for growth. The management expects mid-single digit volume growth over the next four to five years and believes that bottom-line growth will outpace the top-line growth.

  • P&G leverages artificial intelligence and machine learning to enhance convergence, reduce non-movable inventories, improve consumer behavior analysis, and expand distribution reach.

  • E-commerce and digital channels contribute significantly, now accounting for double-digit percentages of total revenue.

  • Over the past decade, it has demonstrated superior and sustained execution with a compound annual growth rate of 9%/13% in net sales/profit after tax for FY23. Additionally, its return on equity has increased by 54% over FY13-23.

  • The P&G Shiksha program has significantly improved the learning environment and empowered marginalized communities. Presently, it collaborates with 13 partners and positively impacts ~+35 lakh children.

Click on the attachment to read the full report:

Motilal Oswal P&G Company Update.pdf
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