Summary
Procter & Gamble's 2008 10-K filing highlights a company deeply entrenched in global consumer markets, operating across three primary business units: Beauty, Health & Well-Being, and Household Care. With a business model focused on brand strength, innovation, and efficient supply chains, P&G serves over 180 countries. The company's scale is evident, with over 138,000 employees and a significant portion of net sales originating from international markets, particularly developing regions. While the laundry category represents a substantial 16% of net sales, P&G strategically aims to shift its portfolio towards faster-growing, higher-margin businesses. The company acknowledges significant risks including fluctuating consumer demand, intense competition, cost pressures from commodities and foreign exchange, successful integration of large acquisitions like Gillette, and regulatory scrutiny, particularly concerning antitrust investigations in Europe.
Financial Highlights
51 data points| Revenue | $79.26B |
| Cost of Revenue | $39.26B |
| Gross Profit | $40.00B |
| SG&A Expenses | $24.02B |
| Operating Income | $15.98B |
| Interest Expense | $1.47B |
| Net Income | $12.07B |
| EPS (Basic) | $3.86 |
| EPS (Diluted) | $3.64 |
| Shares Outstanding (Basic) | 3.08B |
| Shares Outstanding (Diluted) | 3.32B |
Key Highlights
- 1Procter & Gamble operates across three global business units: Beauty, Health & Well-Being, and Household Care, serving consumers in over 180 countries.
- 2The company relies on innovation and brand strength, with research and development expenditures totaling $2.226 billion in fiscal year 2008.
- 3International operations are significant, accounting for approximately 56% of total net sales in fiscal year 2008, with a strategic focus on growth in developing markets.
- 4The Gillette acquisition, completed in October 2005, is a key strategic move, significantly enhancing P&G's global market leadership in areas like male grooming and batteries.
- 5P&G faces substantial risks, including potential material changes in consumer demand, intense competition, cost pressures from commodities, foreign exchange volatility, and significant international operational risks.
- 6The company is subject to ongoing antitrust investigations in the European Union and other countries, which could result in substantial fines.
- 7P&G actively repurchases its stock, with a significant repurchase program authorized between $24 billion and $30 billion over three years, demonstrating a commitment to shareholder returns.