Is Hill’s gaining momentum?
The Colgate-Palmolive subsidiary surpassed $1 billion in quarterly sales and announced the opening of a new factory. However, there has been a slight decrease in profit.
Hill’s posted $1.05 billion (€976.4M) in revenue in the third quarter of 2023, up from $872 million (€810.7M) the year before. According to the insights, pet nutrition comprised 22% of the manufacturing company’s overall sales in the quarter.
Organic sales grew by 15% in Colgate-Palmolive’s pet business in the period, mainly driven by the performance of the portfolio in the US and Europe.
From January to September 2023, sales reached $3.17 billion (€2.94B). During the same period last year, the pet food giant’s revenue hit $2.65 billion (€2.46B).
However, the trends are slightly different if we look at operating profit. In Q3 it remained at $201 million (€186.8M), while it dropped from $617 million (€573.6M) to $575 million (€534.6M) during the first 9 months of 2023.
The multinational says the drop was due to higher costs—mainly in packaging and raw materials—and partially offset by higher pricing.
New factory in Kansas
Hill’s recently announced the opening of a new factory in Tonganoxie, Kansas, which will manufacture 170 varieties of wet pet food products. The 365,000-square-foot facility boasts the latest smart technology and aims to boost the company’s capacity to expand production. The plant runs using an artificial intelligence food safety vigilance system as well as automated robotic devices.
John Hazlin, President and CEO of Hill’s Pet Nutrition, said that the new facility “helps set the stage” for the continued growth of their science-led products.
Back in January, the pet food manufacturer opened another 25,000-square-foot production plant in Kansas.
Investment in vet software company
Colgate’s subsidiary was one of the main investors in a $43 million (€40M) Series B funding round closed a few months ago by veterinary software company Otto.
According to President and General Manager of Hill’s Pet Nutrition US Nicki Baty, Hill’s’ goal is “to find innovative ways to both support veterinary healthcare teams and provide more seamless ways to make nutrition recommendations.”
Under the transaction, Baty joined the Otto team as a board observer.
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