According to senior management of consumer goods major Procter & Gamble, the company is looking forward to sell nearly 100 brands by the end of summer. The company has planned to sell some of the low performing brands and consolidate its brand portfolio.
As per P&G Chief Financial Officer, Jon Moeller, the company’s annual sales would be affected by selling the brands. He said that the company’s annual sales would decline by 14% with the sale of these brands. Previously, it was said that these brands account for 10% of the total revenue.
Next year, the company will be selling Duracell batteries to Warren Buffett’s Berkshire Hathaway. Duracell batteries generated around $ 2.6 billion in annual revenue. P&G also said that it expects that it will be done with majority of the brand sales by mid 2016.
Procter & Gamble has already sold Iams and other pet food brands together with half a dozen of small beauty and overseas laundry brands. As per analysts, the company would soon be selling Braun appliances and Wella salon professional. According to reports, P&G has sold nearly 35 brands or has finalized deals for them, out of total 100.
According to Moeller, the brands being sold by P&G are not weak and could perform under new owners. It is just that they are not performing as per the expectations of the management.
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