Procter & Gamble’s CEO still sees a challenging environment

“Our focus remains on improving Procter & Gamble Company (PG) in a challenging competitive and macroeconomic environment,” summarized David Taylor, Chairman, President and CEO in a news release following Fiscal Year 2020 Second Quarter Results, a statement he already made in the past.

The 2019 Annual Report cited “volatile and challenging government policies, retail transformation, rising input and transportation costs, and highly capable competition” as main challenges PG aimed to address, including growing Environment, Social and Governance (ESG) sustainability demands from consumers.

“Our strong first half results enable us to increase our commitment of cash return to shareowners,” stressed Taylor and over the last quarter, PG returned $5.4 billion of cash to shareholders through $1.9 billion in dividend payments and $3.5 billion of common stock repurchases. Dividends per common share rose 4.00% from $0.7172 to $0.7459 year-on-year for a 2.37% dividend yield as of 01/23/2020.

In 2019, PG led the “construction disruption” in its industry with a view to “winning in today’s dynamic world” through innovation, brand building, digitization & data analytics and supply chain, underlined the Company Strategy.

Technical analysis on 01/23/2020: PG’s stock grew rapidly from a multiyear bottom at around $70.80 in May 2018 to new record highs at around $126, a 78% jump in just 20 months. Despite its unprecedented level, PG’s stock left the MACD overbought territory on a weekly basis in September 2019.

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