Hill’s contribution to Colgate’s revenue increases by 2% in a year

The American multinational said that its pet portfolio contributed 22% of the total sales in the first 3 months of the year, mainly driven by organic sales growth in the US and Europe. 

In the same period of 2022, Hill’s accounted for 20% of Colgate’s total sales. 

The pet food manufacturer’s operating profit in Q1 2023 reached $183 million (€166.7M) against $204 million (€185.6M) in the same period of 2022. This is 10% less. 

Colgate said that increased packaging costs and a bigger investment in advertising negatively impacted the category. On the other side, higher pricing helped to save the numbers. 

“Despite continued pressure from raw and packaging material costs during the quarter, gross profit margin improved sequentially versus fourth quarter 2022, which helped fund a 14% increase in advertising in support of our pricing and robust innovation across all categories,” said the company. 

Colgate-Palmolive hopes to “drive further gross margin improvement in the balance of the year through continued strong pricing and the benefits from funding-the-growth and other productivity initiatives.”