Summary
The Procter & Gamble Company's 2009 10-K filing reflects a company navigating the global economic downturn while continuing to focus on innovation and brand strength. Despite challenging macroeconomic conditions, P&G maintained its market leadership in key consumer categories like laundry and diapers, which together represented a significant portion of net sales. The company's diversified portfolio across Beauty, Health and Well-Being, and Household Care segments, coupled with its extensive global reach in over 180 countries, provided resilience. Significant strategic activity during the year included the divestiture of its coffee business (Folgers) in an all-stock transaction with The J.M. Smucker Company, which resulted in a substantial after-tax gain. This move signals P&G's ongoing efforts to refine its brand portfolio towards higher-growth, higher-margin businesses. The company also highlighted its commitment to research and development, though expenditures saw a slight decrease year-over-year. Investors should note the ongoing risk factors related to consumer demand, competitive pressures, cost fluctuations, and international operations, particularly in developing markets.
Financial Highlights
53 data points| Revenue | $76.69B |
| Cost of Revenue | $38.69B |
| Gross Profit | $38.00B |
| SG&A Expenses | $22.63B |
| Operating Income | $15.37B |
| Interest Expense | $1.36B |
| Net Income | $13.44B |
| EPS (Basic) | $4.49 |
| EPS (Diluted) | $4.26 |
| Shares Outstanding (Basic) | 2.95B |
| Shares Outstanding (Diluted) | 3.15B |
Key Highlights
- 1Procter & Gamble's portfolio is organized into three Global Business Units (Beauty; Health and Well-Being; Household Care) with six reportable segments under U.S. GAAP, including Fabric Care and Home Care, and Baby Care and Family Care.
- 2The company generated approximately 39% of its net sales in the United States, with no other single country exceeding 10% of total net sales.
- 3In fiscal year 2009, the laundry category accounted for approximately 17% of net sales, and the diaper category accounted for approximately 11% of net sales.
- 4Sales to Wal-Mart Stores, Inc. and its affiliates represented approximately 15% of total revenue in 2009, with no other single customer accounting for more than 10%.
- 5P&G completed the divestiture of its coffee business (Folgers) in November 2008 through a merger with The J.M. Smucker Company, recording an after-tax gain of $2.0 billion.
- 6Research and development expenditures totaled $2,044 million in fiscal year 2009, a decrease from $2,212 million in 2008.
- 7The company is subject to ongoing investigations into potential competition law violations across various European countries, with potential for substantial fines.