Procter & Gamble Co. (NYSE:PG)
Management has focused on reducing their costs of products sold and their selling, general and administrative expenses in order to maximize the amount of capital they can return to shareholders. In the first quarter of their fiscal year, Procter & Gamble returned $3.2 billion to shareholders through dividends ($1.9 billion) and stock repurchases ($1.3 billion). Led by activist investor Nelson Peltz, PG has restructured its business around six “small business units” each with their own management team. They have reduced brands from 165 to 65 in order to compete with smaller, more nimble companies such as Harry’s Shave Club while still granting them the cost synergies of a massive company.
From Jeff Auxier (Trades, Portfolio)'s fourth-quarter 2018 market commentary.
