P&G to sell some of its brands by summer

Multinational consumer goods company Procter & Gamble said that by this summer, it will be done with selling some of its popular brands. The company made the announcement during the Consumer Analyst Group of New York conference call. It also gave information about the effect of the brand consolidation strategy on sales and profits of the company.

According to CFO Jon Moeller, the company is heading in the direction of selling 100 brands, which are performing under expected levels, by the end of this summer. And out of these 100 brands, it has already sold 35 and looks forward to selling rest of the brands. The company hopes to sell maximum brands out of the remaining 65 brands, which would be decided by the end of this summer.

Moeller said that the revenue generated by brands, which are considered to be sold, had been decreasing. He said that for the last three years, the revenue of these brands had been falling by mid-single digits. These businesses are considered as low-margin businesses, which didn't make development. So, it has been decided that these will be sold soon.

"We hope by July to turn all the cards over. We have had a lot of interest in the assets we want to dispose", P&G CEO A. G. Lafley told analysts gathered in Boca Raton, Florida. According to the company, 14% of the company's total revenue comes from the 60% brands, which it is planning to sell.

This statement by the company is different from the previous plan. In the previous plan, it was said that the brands which are expected to be sold, generate 10% of the total revenue of the company. And these brands have only 6% contribution in the company's total before-tax profits. P&G has already left pet care and bleach businesses.