Strategic Movements April 2021
Price Check on Kimberly-Clark Again…
Kimberly-Clark, maker of Kleenex, Cottonelle, Scott paper products, Huggies, Depends, and Kotex, plans to raise prices by mid to high single digits in 2021. 2020 Revenue at $19.1 billion and P/E of 20.1.
Price Check on General Mills
General Mills, maker of Cheerios, Chex, Total, Wheaties, Trix, Häagen-Dazs, Wanchai Ferry, Yoplait, Nature Valley, Pillsbury, Betty Crocker, Annie’s, Green Giant, Old El Paso, Hamburger Helper, Blue Buffalo, Progresso, Gold Medal, and Pillsbury, plans to raise prices in response to higher commodity prices. 2020 Revenue at $17.6 billion and P/E of 14.8.
Price Check on Hormel Foods
Hormel Foods, maker of eponymous Hormel meats along with Jennie-O, Applegate, Dinty Moore, Don Miguel, Herdez, Embasa, Dona Maria, La Victoria, Fontanini, Tsang, Spam, and Skippy, is raising prices in response to higher commodity prices. 2020 Revenue at $9.6 billion and P/E of 29.0.
Price Check J.M. Smucker Co
J.M. Smucker Co, maker of eponymous Smucker’s Jams, Jellies, Syrups and Peanut Butter along with Jif, Goober, Dunkin’, Folgers, Milk Bone, Meow Mix, and other brands, reports preparations to raise prices on pet snacks as shipping and other inflationary pressures rise. 2020 Revenue at $7.8 billion and P/E of 15.4.
These may be one-time price increases in response to specific industry pressures, but if the economy rebounds, I expect more signals to demonstrate that this is the time of inflation. What do you expect their revenues P/E will be in 2021?