Procter & Gamble Highlights 'Strong Momentum', Hits Back At Peltz
Consumer goods giant Procter & Gamble has published an updated investor presentation highlighting its 'successful transformation' to create a 'profoundly different, much stronger, and more profitable company'.
The presentation outlines the company's strategy, with its plans to deliver results and shareholder returns.
"The changes needed to accelerate growth are already being implemented," said David Taylor, chairman, president and CEO of P&G.
"We have strengthened and streamlined our portfolio, simplified our structure and significantly enhanced P&G’s productivity. Today, P&G is stronger, more profitable and more agile with the right strategy and the right team to win."
"Our results demonstrate that the plan is working," he added. "We are focused on continuing this momentum and delivering balanced top- and bottom-line growth to enhance value for the short-, mid- and long-term."
This company update follows comments made by investor Nelson Peltz earlier this month in a white paper published by Peltz's Trian Fund Management, which said that P&G needs to reorganise its business units, invest in smaller, high-growth brands, and prioritise its digital strategy.
In response, P&G stated that these comments confirm that Peltz has 'a very outdated and misinformed' view of the company, and ignore its continued transformation and performance.
Trian Fund Management owns about $3.5 billion of P&G stock, making the shareholder activist the company’s sixth-largest investor.
Last month, however, P&G's CEO issued a letter to the company's shareholders, calling on them to snub Peltz, who is seeking election to P&G's board.
“We have done our homework, and while we respect and will continue to listen to Trian as an investor, we strongly believe that putting the wrong person like Mr. Peltz on P&G’s Board of Directors would risk derailing the company’s progress,” said Taylor.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.