Hill’s surpasses $1 billion in revenue in Q3

Hill’s Pet Nutrition reported $1.12 billion (€1.03B) in revenue for Q3 2024, up from $1.05 billion (€971.9M) in Q3 2023, comprising 22% of the American multinational’s total company sales.

The segment’s sales grew 6.3% year-over-year (YoY), with organic sales rising 6.5% during the quarter.

Operating profits showed a substantial 28% increase, reaching $258 million (€238.8M) compared to $201 million (€186M) during the same quarter last year.

Gaining market share

According to the company, the pet portfolio’s volume grew 3.6% during the quarter despite a low-single-digit negative impact from lower private label volume.

The United States led this positive performance with mid-single-digit growth, including the impact of the lower private label volume.

The company told investors it “continues to see” the benefits of its increased capacity at Hill’s, including gaining market share despite being in a “challenging” category.

“Our variety pack offerings, which are a key element of our strategy to gain share in the wet segment of the market, have seen a doubling of volume on a year-to-date basis in the U.S. behind expanded offerings and incremental shelf space,” it says.

9-month period

From January to September 2024, Hill’s generated $3.34 billion (€3.09B) in revenue, compared to $3.1 billion (€2.8B) during the same period in 2023.

Sales displayed a positive growth rate of 5.2%, while organic sales climbed 5.6%.

Operating profit for the pet nutrition segment reached $691 million (€639.6M) from $575 million (€532.3M) last year.

Yearly guidance

Colgate-Palmolive’s global net sales rose by 2.4% to $5.03 billion between July and September 2024, with organic sales growing 6.8%. The company also increased advertising by 16% for its “science, core and premium innovations.”

“We expect continued strong advertising investment through the remainder of the year as we focus on building brand health and scaling the capabilities needed to drive growth,” comments the company’s Chairman, President and CEO, Noel Wallace.

The American multinational anticipates 3-5% overall sales growth in financial year 2024, with organic sales expected to increase by 7-8%.

(Photo credit: Hill’s Pet Nutrition)