May 17, 2017|
Erin Lash (Morningstar, PG, MDLZ) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Erin lash for morning star joins us now here to talk about a couple consumer staples stocks dipping to talk about on the day where the markets getting hammered Eric thank you for joining us. Earned let's talk first about Procter & Gamble obviously a lot of people familiar with the company 220 billion dollar behemoth. They've been kind of stuck in neutral over the last couple years here what's your opinion on the at this point. You know if you look at the left all they wrapped a program over the prior two years. Shut more than half of their brand portfolio and from our pre. Active that would go why is strategic he got hurt. Number one it enabled them to focus it enables them to focus their resources. On bulk financial as well as personnel. I met there. Core brand the most profitable brand. But it doesn't come come at the expense of the negotiating leverage and scale the billions that they disposed of were I relatively. Small part of their overall mixed thought from a failed and profitability perspective until we view those efforts favorably. It's obviously going to take time him pretty important to start to pay off. What we think that that was the right strategic direction from our perspective. The market still is reluctant camp I into the fact that the firm can generate. More outside. On top line growth sustainably longer term outside I mean. Low to mid single digits so not overly broad but in the context of you know. But Torre consumer product company mature consumer product completely think that there are opportunities to further. Grease the wheels of the pipeline trajectory. What's been over now to Mon believes international. This company obviously worth about seventy billion dollars major player in the snack space here. Where do you see them going on cares a particular. Any chance that they make any acquisitions or potentially spin off. Part of their company or. It may be just UA completes sale to someone what do you think is going on there. Too young man police have obviously been calm you know very prominent name was in the rumor mill on speculation for consolidation in the states and and a number of different factors. I would say that over the last several years the company had been working. To focus more on their core confectionery. Necking. On business so they can you know they've gone off there and I'm coffee at such a few years ago. Oh who left court bullion as well and from my perspective that shows that they're not you know looking to drive toppling growth at all costs. I'm really looking to focus on driving more balanced and profitable. Com pipeline growth. You know from a to promote the perspective of whether they would ultimately be a target down the road you know local we think that they. Could fit. The bill look like a firm like crack kind is looking. To acquire given the fact that today. Has significant exposure to emerging and developing markets. Well cracked kind of underpenetrated. India and the fact that there are profitability continued collect their peers. I would say however that they're making progress. To jive dot. Com and notepad continue to build quartermaster -- quarter over the last several years. If they would've Bolter amount that's sense we think that they could. Would be more. Couldn't. Following Q more capable hands on the they have been making progress I'm not that pertinent and very unclear where Kraft kind of intentions lie at this juncture. Very good Aaron thank you very much for the time today. Erin lash for Morningstar talking about two consumer staples companies the first one Procter & Gamble has ticker PG. Second one month at least international the ticker and indeed. LZ.