Zesty Paws drives H&H Group’s solid performance
The Health & Happiness Group reported a 4.1% revenue increase in the pet care segment for the first half of 2024.
The Hong Kong-headquartered company’s Pet Nutrition and Care (PNC) segment’s revenue rose 4.1% year-on-year (YoY) to RMB 985 million ($138.9M/€125.3M), up from RMB 926.7 million ($130.7M/€117.9M) during the same period in 2023.
Pet supplements were the standout performer, generating RMB 658.4 million ($92.8M/€83.7M), a 12.3% increase from RMB 572 million ($80.6M/€72.7M) the previous year.
This growth was largely driven by Zesty Paws’ strong performance in North America, a brand H&H Group acquired in 2021.
However, attempts to premiumize the Solid Gold brand, acquired in 2020, and optimize its channel strategy led to a decline in half-year net profits.
Zesty Paws recently launched in the UK and Europe, expanding its global presence.
Supplement expansion in the US
Sales of Solid Gold saw a slight increase in the American market as Zesty Paws grew its presence in North America.
“With our launch into key retailers such as Sam’s Club and Petco this year, we are one of a few pet supplement brands present in all key retail formats,” highlights CEO Akash Bedi.
Zesty Paws’ earlier expansions into Walmart, Target, PetSmart, CVS, and Tractor Supply created a high-base effect this year, which slowed the brand’s top-line growth rate to the low double digits.
Decline in Chinese market
In mainland China, sales dropped by 14.8%, attributed to the company’s focus on premiumizing the Solid Gold brand.
Despite this decline, Solid Gold remained the second-leading brand in the online premium dry cat food category. The brand is also present across 10,000 pet stores and pet hospitals.
Full-year outlook
For the rest of 2024, H&H Group aims to capitalize on Zesty Paws’ strong market position in North America while exploring expansion opportunities for the supplement brand in the UK, Europe and Asia.
The group expects Solid Gold’s performance to remain under pressure through the end of the year as it restructures the business and optimizes its product portfolio in North America and China.
Share this story:
