Overview

Founded in 1837, Procter and Gamble (symbol: PG) is now one of the largest companies in the world. They sell their products in over 180 countries and currently have a market capitalization of $180 billion.

Business Segments
PG is divided into three business units:

Beauty and Grooming
In this unit, PG holds brands such as Gillette, Olay, Pantene, Old Spice, Venus, Hugo Boss, Cover Girl, Dolce and Gabbana, and more. Beauty and Grooming accounts for 32% of total 2009 company revenue.

Health and Well-being
In this unit, PG holds brands such as Always, Crest, Oral B, Scope, Tampax, Pepto Bismol, Iams, and more. Health and Well-being accounts for 21% of total 2009 company revenue.

Household Care
In this unit, PG holds brands such as Tide, Swiffer, Puffs, Pampers, Mr. Clean, Downy, Febreeze, Gain, Duracell, Dawn, Downy, Cheer, Bounty, Bounce, Cascade, and more. Household Care accounts for 47% of total 2009 company revenue.

Revenue, Earnings, Cash Flow, and Margins

Procter and Gamble has been adept at growing despite its massive size.

Revenue Growth
Year Revenue
2009 $79.029 billion
2008 $81.748 billion
2007 $74.823 billion
2006 $66.724 billion
2005 $55.292 billion
2004 $51.407 billion
This represents an average annual revenue growth rate of about 9% over the last five years. This is quite amazing for such a large company.

EarningsGrowth
Year Earnings
2009 $13.436 billion
2008 $12.075 billion
2007 $10.340 billion
2006 $8.684 billion
2005 $6.923 billion
2004 $7.257 billion
This represents an average annual income growth rate of about 13% over the past five years, which again is quite amazing. It should be noted, however, that during 2009, Proctor and Gamble discontinued operations of some of its businesses, so its income from continuing operations is down to $11.3 billion. An example of this is their large sale of Folgers coffee to Smuckers company.

Operating Cash Flow Growth
Year Cash Flow
2009 $14.9 billion... [continues]

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