Hill’s sales rose by 3% in Q3
The pet food manufacturer earned $872 million, but “significantly higher” costs negatively impacted the profit of the Colgate-Palmolive subsidiary.
The sales growth was led by the performance of Hill’s portfolio in the US and Europe.
In the 9 months ending 30 September 2022, the manufacturer posted sales of $2.65 billion. In the same period of 2021, pet sales accounted for $2.42 billion.
The operating profit decreased more than 14% in the last quarter to $201 million. Hill’s Pet Nutrition said this was due to “significantly higher” raw, packaging, and logistics costs. The red numbers were contained by a reduction in advertising investment and other cost savings.
From January to September, the company’s income reached $617 million. In the same period of 2021, it represented $661 million.
Colgate-Palmolive recently announced the acquisition of 3 US factories, property of ex-Mars manufacturer Red Collar Pet Foods, to expand Hill’s production. The new production facilities will cost the company $700 million.
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