To The Moon

$Procter & Gamble(PG)$ Consumer price sensitivity manageable, and diversification of revenue protects downside risks. PG offers a wide range of mass market products spanning across all categories from feminine, oral, home care, with products diversified across various segments of affordability. With something for everyone at a variety of price points, this ensures that its end customer will always be able to find or afford a product that best suits their needs. Besides its direct-to-consumer sales, PG customers include mass merchandisers, grocery chains, drug stores, department stores as well as other specialty stores and channels. In terms of concentration, Walmart represents c15% of total sales, with no other singular customer accounting for >10% of sales. Continuous improvement across product ranges drives "superiority" and customer loyalty. PG has an emphasis on delivering "superior" consumer value, a strategy which management hopes will help unlock a greater share of category growth and improving margins via constant marketing monitoring and product improvement. This strategy has paid off across various products lines; for example, China Hair Care had a stellar 2021 with organic sales for Pantene growing 25% within the year due to innovative marketing and new treatment products. Approximately 75% of PG's portfolio currently falls into the "superior" category, with management striving to achieve a range of 80-90%. Although PG product offerings are not wildly exciting or high-growth in nature, these household essentials tend to have sticky customers and need constant replenishment, driving repeat sales business. Increasing market share and organic growth across geographies and channels. PG has invested in its e-commerce channels, with e-commerce sales up 35% for FY21, accounting for >USD10bn sales, representing 14% of total revenue. E-commerce has also paid off in China, where PG has doubled in sales over the last four years. The company has invested in targeted automated programmatic buying, which has yielded results in China where 90% of media spending is in the digital space, and >65% of is purchased via programmatic media. However, with most of its sales generated in developed markets (c70% in US and Europe), PG's overall organic growth looks likely to be slow and stable (c4-5% p.a.) as bulk of its sales are focused on these mature markets. Risks PG faces costs and wage pressures as input prices rise, and margins could be further impacted by supply chain disruptions and delays. The consumer staples and household products segment is also highly competitive. Given their global footprint, unexpected macroeconomic situations or foreign exchange fluctuations could affect income. DYODD