Hill’s Pet Nutritiona division of Colgate-Palmolive, recently released its financial results for the fourth quarter (Q4) ended December 31.
Net sales for Hill’s Pet Nutrition reached $1.11 billion, up 5% from $1.06 billion in the fourth quarter of fiscal 2022, the company reported. Operating income was $231 million for the segment, down slightly from $233 million in fiscal 2022 in Q4.
Organic sales for the fiscal year showed a steady growth of 10.5%, with a price increase of 11%.
Reported volume decreased 4% reflecting the impact of lower private label volumes, the company said. Organic sales showed growth of 4.5%, with a price increase of 8.5%. Organic volume, however, experienced a 4% decline in the quarter. The decrease in volume was attributed to lower private label pet food volume.
Hill’s Pet Nutrition’s Operating profit represented 20.7% of net sales in the fourth quarter, down 130 basis points year over year.
The company noted the decrease in operating profit as a percentage of net sales was due to significantly higher raw and packaging material costs, increased advertising investment and start-up costs associated with a new manufacturing plant, partially offset by higher pricing and cost savings from the company. funding-the-growth initiatives, the company said.
“While the pet food category has slowed, we are still gaining share in the pet specialty channel on the strength of our science-driven portfolio and our investment behind brand development, with spending on advertising on the Hill increased more than 100 bps on a percent sales basis for the fourth quarter and year,” the company reported.
Hill’s Pet Nutrition representing 23% of Colgate-Palmolive Company’s total sales in Q4 2023. The company’s US and European divisions led organic sales growth in Q4.
The company noted its continued investment in the capabilities required to deliver sustainable future growth, building strength in areas such as innovation, digital, data and analytics, revenue growth management and advertising. Hill’s Pet Nutrition opened its newest manufacturing plant in Tonganoxie, Kansas, in October. The 365,000 square foot, fully designed smart facility will increase the company’s production capacity for canned pet food and provide a runway for continued expansion of Hill’s Science Diet and Prescription Diet brands.
“With the opening of our Tonganoxie plant last year, we have significant changes planned for our Science Diet and Prescription Diet wet food portfolios,” the company said. “Our enhanced science-based offering includes alternative forms and packages such as stews, mousses, pouches and multi-packs that have gained additional shelf space in the pet specialty channel.”
According to Petfood Industry Top Pet Food Companies, Hill’s Pet Nutrition sells more than 300 products, primarily through authorized pet supply and veterinary retailers in more than 80 countries worldwide.
