Sector: Consumer Staples | Focus: Personal Care Products
HQ: Cincinnati, Ohio
Financial Risks
The company faces risks from global economic volatility, geopolitical tensions, and government policies, impacting sales, earnings, and cash flow. Foreign exchange fluctuations, commodity price volatility, and supply chain disruptions pose significant cost pressures. Legal and regulatory changes, including tax policies, also present risks. The Gillette indefinite-lived intangible asset is susceptible to further impairment due to factors like discount rates, growth rates, and royalty rates.
Financial Upside
The company's organic sales increased 2% in the quarter, excluding acquisitions, divestitures, and foreign exchange. Strong short- and long-term debt ratings allow for favorable debt refinancing. Operating cash flow was $4.3 billion, and adjusted free cash flow was $3.9 billion. The company expects to repurchase shares at a value of $6-$7 billion in fiscal year 2025.
