P&G reported stronger earnings overnight but wrote off another $8bn in 4Q on top of the $6bn in 3Q on the Gillette brand in terms of goodwill and intangibles. Of course management brushed this off as significant devaluations over a decade, lower shaving frequency and new entrants at prices lower than the average. Nothing to do with the toxic masculinity campaign 6 months ago? Get real.
Under grooming, most of the results performance came through the sale of real estate in Boston. Other than that the company reported unfavorable channel mix, volume declines, brand communication investments and currency headwinds. The CFO Jon Moeller said with respect to Gillette,
“You’ve got here a business with a very broad global footprint, and particularly with the year that we have just been through, that impacts that value assessment,”
Sorry, what does that even mean? No surprises that grooming was the worst performing division in P&G’s quiver.
Get woke, go broke.