02.20.15
Procter & Gamble's planned sale of 100 brands will reduce annual sales by 14%, or about $11 billion. The move follows the sale of 35 brands to date. When the consolidation process was first announced, P&G had expected it would trim sales by 10%.
The extra cost-cutting spooked investors, as shares dipped 1.22% at the close of yesterday's trading.
However, analysts say a fit and trim P&G will consist of 65 leading brands in 10 key categories that are structurally attractive and play to the company's core strengths. For 2015, P&G executives expect low-to-mid-single-digit organic sales growth, FX headwinds of negative 5%, and all-in sales growth of negative 3% to negative 4%
The extra cost-cutting spooked investors, as shares dipped 1.22% at the close of yesterday's trading.
However, analysts say a fit and trim P&G will consist of 65 leading brands in 10 key categories that are structurally attractive and play to the company's core strengths. For 2015, P&G executives expect low-to-mid-single-digit organic sales growth, FX headwinds of negative 5%, and all-in sales growth of negative 3% to negative 4%