The Procter & Gamble Company
) recently announced reorganization of its business in order to
support long-term growth. The company intends to group its Global
Business Units into four industry-based sectors and place each
sector under a Group President who would in turn report to A.G.
Lafley, P&G Board Chairman, President and Chief Executive
Officer. These changes will be effective from Jul 1, 2013.
Previously, the company had five reportable segments namely
Beauty, Grooming, Health Care, Fabric Care and Home Care, and
Baby Care and Family Care. From Jul 1, 2013, the four sectors
will be as follows:
- Global Baby, Feminine and Family Care led by Martin
- Global Beauty led by Deborah A. Henretta
- Global Health and Grooming led by David S. Taylor
- Global Fabric and Home Care led by Giovanni Ciserani
The changes are expected to encourage global expansion and
product innovation, improve productivity, strengthen the business
in developed markets and maintain growth in developing markets.
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Fiscal 2012 (ending Jun 2012) was a tough year for P&G as it
performed below expectations. Recently, the company posted mixed
third-quarter 2013 results in late April. Though earnings
exceeded management's expectations on cost savings, organic
revenue growth was quite weak. Its fourth-quarter outlook was
also quite subdued with earnings expected to decline from the
year-ago results. The reorganization is expected to revive the
consumer giant's struggling business.
P&G carries a Zacks Rank #3 (Hold).
Other consumer staples stocks that are worth considering include
Flower Foods, Inc.
), carrying a Zacks Rank #1 (Strong Buy) and
Campbell Soup Company
H. J. Heinz Company
), both carrying a Zacks Rank #2 (Buy).