Zesty Paws and Solid Gold performance boost owner’s financials

Hong Kong-based health and nutrition corporation H&H Group announced a total revenue of CNY3.15 billion ($457M/€416M) in the 3 months till 31 March 2023, an increase of 17.3% year-on-year.

Out of all the categories, pet nutrition and care segments were one of the main contributors to the growth. The segment’s revenue accounted for CNY447.9 million ($65M/€59M).

This marked a positive increase of 28.2% from the same period in 2022 when the numbers tallied CNY349.4 million ($50.7M/€46.2M). 

Leading markets

The company did not share specific regional numbers but said the category registered a “steady growth” of 13.9% in mainland China. This was led by Solid Gold, which maintained the second position in the online premium cat dry food category. 

According to the company, the brand is present across 7,900 supermarkets, pet stores, and pet hospitals nationwide. 

Akash Bedi, H&H’s Interim Chief Executive Officer, said the group is focused on expanding the pet brand online and offline. “These wins were supported by our focus on remaining at the forefront of consumer and industry trends, such as the increase in pet adoption rates and spending on premium pet nutrition,” he said. 

In North America, Zesty Paws and Solid Gold increased by 23% in the first 3 months of 2023. The spurt in growth is attributed to the 2021 acquisition of Zesty Paws at a time when the industry was booming.

Zesty Paws expanded its retail reach in the period by adding CVS Pharmacy and Tractor Supply to its distribution network along with Walmart, Target, PetSmart, and other independent pet stores.

According to Bedi, the two brands are spaced out across 10,100 stores nationwide.

Plans for 2023

H&H plans to expand into Europe and mainland China. Bedi commented on pursuing organic growth in strongholds and new markets while driving expansion and innovation through product strategies. 

“2023 has kicked off with an encouraging Q1, setting the group up for a promising growth outlook for the rest of the year.”

He also said the company is anticipating “macroeconomic challenges” and taking steps to mitigate risks for the rest of the year