Proctor and Gambles operates a portfolio of go to products which are essential stocking items for various retailers. Stores simply must have their product on the shelf. This drives customer traffic which can be leveraged into other sales.
P&G is reducing costs by $10 billion over the next five years. Staff reductions, sourcing and materials are all being reviewed and costs will be lowered. Cost reductions can only work for so long but Proctor and Gamble have enough fat to feed earnings growth.
Increasing amounts of revenues come from low tax rate jurisdictions. This creates shareholder wealth until such time as the profits are to be returned to the USA. But in the meantime wealth is created outside of America.
George Gutowski writes from a caveat emptor perspective.