On 28 July, Colgate-Palmolive announced that its pet division Hill’s Pet nutrition could record the highest net sales growth in the second quarter across all of Colgate’s divisions.
Hill’s reached $1.06 billion in net sales, a 16.2% increase compared to the second quarter on 2022. The whole first period til June 30, the company recorded net sales of $2.12 billion, an increase of 18.9%. Hill’s operating profit decreased in the second quarter by 10 % to $191 million and across the six-month period by 10.1% at $374 million.
Hill’s organic growth was recorded at 10.5% whereas organic volume decreased by 3% and prices increased by 13.5%. Growth drivers were US and European markets while there could be recorded decreased in Australia.
Recently, Hill’s has also extended its capacity by purchasing 3 dry pet food plants from Red Collar and wet pet food facilities from Nutriamo and the upcoming opening of its new wet pet food factory in Tonganoxie.
Hill’s represented 22% of Colgate-Palmolive’s overall net sales in the second quarter. The rising costs for raw and packaging materials have negatively affected the operating profit.
Colgate-Palmolive expects even higher costs “by several hundred million dollars, primarily driven by agricultural costs at Hill’s and specialty chemicals” later this years, but has already reported a couple of declines and stabilizations.
Across all sections, Colgate-Palmolive recorded net sales increase of 7.5% to $4.82 billion while organic growth was 8%. That is why, the company has updated its full-year guidance now expecting a net sales increase of 5-8 % and organic sales growth of 5-7%.
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