Petcare was Nestlé’s second most profitable business in Q1 2023

Nestlé highlighted that Purina was the largest contributor to organic growth across all its businesses in 3 first months of the year.

The pet care business of the multinational is the second most profitable sector after the beverage portfolio. Purina’s revenue grew from €4.17 billion ($4.57B) in Q1 2022 to €4.74 billion ($5.2B) in the same period of 2023. 

François-Xavier Roger, Nestlé’s Executive Vice President and Chief Financial Officer, explained that pet care “continued strong double-digit growth despite capacity constraints.” The company attributed the success of the pet category to the strong momentum for science-based and premium brands.

“Growth was also supported by pricing, continued e-commerce momentum, and innovation,” he added.  

For his part, CEO Mark Schneider clarified that the increase in organic growth was due to the team’s diligence to “protect volume and ensure a resilient mix.” In addition, he noted the company’s efforts in “responsible pricing to offset the ongoing pressures from the 2 years of cost inflation.”

North America and Europe 

Nestlé’s pet food portfolio was listed as the main or one of the largest contributors in 4 out of its 5 operating regions, with the exception of Asia, Oceania, and Africa (AOA).

Purina witnessed the majority increase in share gains in North America, specifically in e-commerce. “Purina ONE, Purina Pro Plan, and Friskies all saw strong double-digit growth,” it said. 

In Europe, Purina was the “key contributor,” and the pet care portfolio assisted the global organic growth, which hit 9.7%. A Felix-brand commercial with Robbie Williams resonated strongly with consumers, according to Nestlé.

Sustainability

In terms of future developments, Nesté told investors that it is moving with the trend of promoting environmentally friendly manufacturing processes. 

The firm aims to reach over 95% of reusable or recyclable packaging by 2025.

Purina recently told PETS International that it is on track to reduce the use of virgin plastic by a third by 2025 and increase the use of recycled content in cat litter packaging.