Zesty Paws register double-digit increase in performance

The pet portfolio of Hong Kong-based H&H saw 5.4% year-on-year (YoY) revenue growth from January to September 2024, reaching RMB 1.46 billion ($201M/€192M). The most recent quarter’s growth was somewhat softer at 4.5% YoY.

However, H&H’s pet business was not large enough to counteract losses elsewhere in the company’s portfolio. Overall, H&H reported revenue dropped by 6.1% versus the same nine-month stretch in 2023, falling to RMB 9.65 billion ($1.33B/€1.27B).

According to the company’s recent earnings, the overall losses came from double-digit declines in its infant care division.

Behind the growth

Pet supplement brand Zesty Paws has been a strong performer among H&H’s suite of wellness brands. Riding broader market growth trends and increasing pet humanization, brand sales grew by 10.6% on a like-for-like basis over the first nine months of 2024.

Product expansion also drove the high growth. Within the US, Zesty Paws has pushed its products onto more shelves. According to the company, the products can now be found at Costco, Petco, Walmart, Target, PetSmart, CVS and other major chains.

Zesty Paws launched its products in Europe, the Middle East, and Asia earlier this year. It has secured positions on shelves at the UK-based retailer Pets at Home and Arcaplanet in Italy.

On track

H&H admits that Zesty Paws’ growth in North America remains “on track” at a double-digit level, which may continue as it expands into new markets and rides industry trends.

However, the cat food brand Solid Gold is still undergoing premiumization and channel optimization, which has proven costly in 2024. Despite the losses, the company has maintained its position as the top premium dry cat food brand sold online in mainland China.

The earnings reports admit that these issues are likely to remain short-term. The business’ restructuring is expected to be complete by the end of 2024.