In late July, P&G wrote down its Gillette business by $8 billion resulting in a net loss of $5.24 billion in the quarter. According to the article by Amelia Lucas of CNBC, the one time non cash was to adjust the carrying value of Gillette’s goodwill and intangible assets.

P&G are still confident in the business as they sold $6.22 billion of men’s razors and $1.28 billion  of women’s razors.

Gillette nas a 52.8% market share of men’s razors.

The competitive nature of razors are men growing beards, Dollar Shave Club owned by Unilevet and Harry’s owned by Edgewell Personal Care.

The stock moved up 4% of the day of the announcement.

Linking to dividend paying stocks, a great dividend stock has and continues to be P&G, it does show the investor even though P&G is one of the best marketing machines with a number of billion dollar products it faces challenges from changing markets. P&G did the right thing and it is a credit to their management, did your investments do the same?

There are more questions than answers, till the next time- to raising questions.