Colgate And P&G Post Quarterly Sales

Colgate-Palmolive Co. showed a third quarter increase while Proctor & Gamble showed decline.

Both Colgate-Palmolive Co. and the Procter & Gamble Co. reported quarterly sales results on April 30. Net sales for Colgate’s Hill’s pet division increased slightly during the first quarter of 2009, while net sales for P&G’s pet care division, which includes snacks, declined four percent during its third quarter of fiscal year 2009.

New York, N.Y-based Colgate reported Hill’s Pet Division net sales at $506.4 million during the first quarter of 2009 ended March 31, compared to $503.2 million in the same period a year ago. Unit volume declined 7 percent, pricing increased 14 percent and foreign exchange was negative 6.5 percent. Hill’s organic sales, which exclude foreign exchange, acquisitions and divestments, increased 7 percent during the quarter. Volume growth in Russia, Germany, Turkey, the Benelux countries (Belgium, the Netherlands and Luxembourg) and Austria was more than offset by volume declines in the United States, France, Switzerland, the United Kingdom and Canada. Operating profit increased 3 percent during the quarter to $131.7 million due to the benefits of higher pricing, which more than offset the impact of higher raw and packaging materials costs.

Products contributing to Hill’s sales in the U.S. specialty channel include Science Diet Nature’s Best Canine and Feline, Science Diet Mature Adult Canine, new Science Diet Culinary Creations Feline and the re-launch of Science Diet Puppy and Kitten dry foods. Prescription Diet j/d Canine contributed to sales in the U.S. veterinary channel.

New pet food products contributing to international sales include Science Plan Nature’s Best Canine and Feline in Europe and the re-launch of Science Diet Puppy and Kitten in Japan.

Cincinnati-based Procter & Gamble reported its snacks and pet care division’s net sales declined four percent to $764 million during the third quarter ended March 31, compared to the year ago period.

Organic sales increased two percent behind strong growth of pet care. Positive pricing impacts of 10 percent more than offset a six percent reduction in unit volume and a negative product mix impact of two percent. Unfavorable foreign exchange reduced net sales by six percent. Net earnings decreased 14 percent to $51 million during the third quarter.

For the first nine months, the snacks and pet care division’s net sales increased 1 percent to about $2.4 billion.


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