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Kimberly Clark Corp (KMB), The Procter & Gamble Company (PG): Boring Can Be Beautiful With This Company

For The Procter & Gamble Company (NYSE:PG), all eyes are on the return of former CEO A.G. Lafley, who was in charge from 2000 to 2009. Shareholders are hoping he can rework the magic he had during his previous tenure. His first move was to reorganize the company into four divisions led by a group president who will report directly to Lafley. The plan is to spur growth in emerging markets and for The Procter & Gamble Company (NYSE:PG) to become a more efficient and profitable company.

The company is in the midst of a cost-cutting plan that is expected to save $10 billion by 2016. To spur growth in emerging markets, the company has plans for 20 new manufacturing facilities in Brazil, China, and Eastern Europe by 2015. In China, a new plant in Guangzhou will be operational later this year and will produce Pampers diapers. The company’s stated goal is to acquire 1 billion new customers by 2015.

By localizing production with new manufacturing facilities, The Procter & Gamble Company (NYSE:PG) can roll out products quicker and with less cost to the company. If A.G. Lafley can accomplish these goals, there’s plenty of growth ahead for The Procter & Gamble Company (NYSE:PG).

Kimberly-Clark competes with Energizer Holdings, Inc. (NYSE:ENR) and its Playtex line of feminine hygiene products, Diaper Genie baby products and Wet Ones wipes. Even though the company is named after its battery division, the personal care division accounts for more than half of the company’s sales.

Energizer Holdings, Inc. (NYSE:ENR) is looking to achieve growth via licensing deals. The company just hired licensing agency Brandgenuity to find deals for its personal care products, including its Playtex line. The goal is to create more value for Energizer Holdings, Inc. (NYSE:ENR)’s brands via strategic partnerships.

The company is also undergoing a significant restructuring to improve profitability. The company just increased its total expected savings by $25 million to a total of $225 million. So far, the company has eliminated 700 positions, or half of its stated goal.

Foolish assessment

Overall, my favorite is Kimberly-Clark, but The Procter & Gamble Company (NYSE:PG) is a close second now that A.G. Lafley is back in charge. I’m disappointed with Energizer Holdings, Inc. (NYSE:ENR) and its aggressive cost cutting. Management is making deep cuts in the organization and that can’t be good for morale. I’m not impressed with the company’s strategy to license its products. I’ll have to wait and see the results from that initiative.

For an investor looking to own a boring, solid consumer products company, stick to Kimberly-Clark or Procter & Gamble. You wouldn’t have been wrong doing so in the past and likely won’t be wrong doing so in the future.

The article Boring Can Be Beautiful With This Company originally appeared on Fool.com and is written by Mark Yagalla.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends Energizer Holdings, Kimberly-Clark, and Procter & Gamble. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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