Most consumers know Procter & Gamble (NYSE: PG) very well – or at least its product line. The company serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always, Bounty, Charmin, Downy, Febreze, Gillette, Head & Shoulders, Oral-B, Pampers, Pantene, Tide, among others. Products used continuously by people, who are loyal to these brands
For investors looking for a more balanced investment in consumer goods for a post-pandemic world, Procter & Gamble is a good bet.
P&G’s businesses are diversified in five sectors: home care fabrics and products, baby products, women’s and family hygiene products, beauty products, health products and beauty products. It also generated more than half of its revenue outside North America, which greatly reduced its exposure to volatile COVID-19 buying trends in the U.S.
Before the pandemic, P&G’s weakest link was its preparedness unit, which fought against competitors like Unilever. This business did not improve during the pandemic, but the crisis boosted sales of its fabrics and personal care products.
P&G expects its organic sales to increase by 2% to 4% in fiscal year 2021 and its main profit to grow by 3% to 7%. It expects its main brands to continue to increase its share in higher growth markets. P&G also expects stronger organic sales growth in the first half of 2021, followed by “moderate” growth in the second half
When this happens, P&G’s more diversified portfolio, more balanced outlook, higher dividends and lower valuation will make it a very attractive basic consumer action for investors.