The Procter & Gamble Company (NYSE:PG) not gambling with pet health, Colgate-Palmolive Company (NYSE:CL)

Posted by Lynn Eisler June 19, 2013 0 Comment 2099 views

Procter & Gamble Company (NYSE:PG)’s Natura Pet Products is actioning a voluntary recall of certain lots of dry pet food as they have the potential to be have Salmonella contamination. Salmonella can have an adverse affect on animals that consume the products. Apart from this, humans who handle contaminated pet products are also at risk. This is particularly true if they have not washed their hands thoroughly after handling these products or even surfaces that have been exposed to them.

All the products that were recalled had been packaged in one particular production facility. In routine FDA testing, one lot tested +ve for Salmonella presence.  No reports of either pet or human illness that are associated with this particular product have come in. Natura is recalling all the products that have an expiration date that is prior to 10 June 2014, as a precautionary measure. These affected products are retailed in bags via select pet-specialty retailer’s veterinary clinics and online in the U.S and Canada. No canned wet food has been affected by this particular announcement.

The competition

Procter & Gamble Company (NYSE:PG) has been facing strong competition from the companies like Colgate-Palmolive Company (NYSE:CL) and Johnson & Johnson. The former offers a wide range of home products. However, its primary business segment has always been the oral-care industry. In the same quarter in which P&G reported dismal earnings, CL reported earnings of $1.32/ share, in comparison to $1.24/share in the same quarter, last year. Colgate-Palmolive has steadfastly been a very shareholder-friendly company and paid its investors dividends consistently. In the last financial year, the company paid dividends of $1.22/ share/.

Its earnings growth has been pretty impressive and its projected y-o-y earnings growth for the 2013 financial year will be in the 5.5%-6.5% range. It has also announced a cost reduction program of $10M. The aim of this program is to improve the company’s net manufacturing margin by 5 percent every fiscal year.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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