The Procter & Gamble Company PG recently announced the appointment of David S. Taylor as Chairman of the Board effective Jul 1, 2016. Taylor will also assume the role of President and CEO.
Taylor has been with P&G since 1980 and played an important role in the creation of its core businesses, including Baby Care, Family Care, Hair Care and Home Care. Taylor has served as Group President of Global Beauty, Grooming and Health Care. Taylor has also led the Family Care and Home Care segments, both of which delivered double-digit profit and mid-single-digit sales growth under his leadership.
Taylor will take over his new position, following the retirement of the present Executive Chairman A.G. Lafley. Lafley has been P&G’s Chairman, President and CEO since 2013. Under Lafley’s guidance for the past three years, the company is undergoing strategic and leadership transformation, rationalizing portfolio, improving productivity and creating global leadership team.
P&G has been struggling over the past few quarters to boost sales. Significant currency headwinds, weak volumes, brand divestures, and slowing market growth have been hurting sales.
However, this Zacks Rank #3 (Hold) company is investing in its brands and products and re-designing the supply chain to boost productivity and organic growth. The portfolio-reshaping plan, despite hurting near-term sales/profits, will ultimately increase profitability. Importantly, P&G’s productivity improvements and aggressive cost-saving efforts have consistently improved margins and the trend is expected to continue in the future.
Stocks to Consider
Some better-ranked stocks in the Soaps/Cosmetics space include Church & Dwight Co. Inc. CHD, Unilever N.V. UN and Unilever PLC UL, all with a Zacks Rank #2 (Buy).
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