Colgate-Palmolive 's second-quarter results have shown a decrease in revenue, partly because of declines in its Hill's petfood division, Reuters report ed. The fall in the share prices wiped out gains from the past two weeks.
Colgate's quarterly profit, however, topped estimates with a 7.5% increase in prices that helped offset the revenue drop. Hill's, which accounts for 14% of Colgate's total sales, increased prices in 2008 and earlier this year to offset higher costs.
Colgate's second-quarter sales dropped by 5.5% to US$3.75 billion, whereas the analysts, on average, expected US$3.78 billion, according to Reuters estimates. The company said it was comfortable with the forecast for the third quarter of the year.
While cat trends continue, the pandemic has added to overall slow-growth treatment of the cat food market.
Premiumization and humanization, as well as automation, fueled continued operation growth in spite of the COVID-19 pandemic.