Makers of family items like tissues and cleansers have been among the many greatest winners from the coronavirus disaster. However in Colgate-Palmolive’s CL -0.04% quarterly outcomes Friday, there have been early warnings that the nice instances might not final.
Up to now this 12 months, consumer-staples makers are up by between 5% at Procter & Gamble PG -1.09% and 50% at Clorox CLX +2.25% in opposition to a principally flat efficiency for the broader market. Colgate-Palmolive falls in the course of the pack, having risen round 12% this 12 months.
As with others within the sector, Colgate’s second-quarter earnings have been sturdy. Natural gross sales, which strip out the affect of mergers and foreign money fluctuations, rose 5.5% from a 12 months earlier, and soared 11% in North America.
However a better look turns up some causes for warning. In areas of the world the place Covid-19 was early to flare and is now receding, Colgate’s outcomes have been much less spectacular. In Asia Pacific, natural gross sales have been up simply 0.5% from a 12 months earlier. In Europe they have been down 1.5%. Customers in Europe, the corporate stated, are destocking after loading up their pantries within the first quarter.