Consumer behemoth P&G has started to speak publicly about its future – and the idea of a possible further break-up.
The Pantene, Aussie and Head & Shoulders owner’s sales continue to stagnate, and its share price continues to drop (down more than 14% since a year ago), despite selling off 43 of its beauty brands to rival FMCG company Coty earlier this year.
At the Morgan Stanley Global Consumer & Retail Conference held in November, Chief Financial Officer Jon Moeller told Wall Street analysts that more operational fracturing could have serious implications. Moeller said breaking up would increase costs and potentially lumber the company with large tax bills. However, he did acknowledge that a break-up wasn’t wholly out of the question. “We’re not averse to looking at any option that creates value for shareowners, but it’s not intuitive that that one creates the best value longer term,” Moeller said.
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